Rejecting Indian counterpart’s bid, Dhaka Stock Exchange is set to sell its 1.8 billion shares or 25% of the exchange 21 taka ($0.25) per share, around $122 million, during the tender process and pledged additional technical support worth nearly $37 million. National Stock Exchange of India made a lower offer of 15 taka ($0.18) per share.
According to bourse’s spokesman Shafiqur Rahman told AFP, officials from Shenzhen Stock Exchange and Shanghai Stock Exchange inked the deal to acquire 25 percent of the Dhaka Stock Exchange’s (DSE) 1.8 billion shares:
“The finance minister was the chief guest at the signing ceremony.”
Bangladesh’s securities regulator asked the bourse to reconsider its decision to approve the Chinese offer over that of its powerful neighbor India. However the intervention by the Bangladesh Securities and Exchange Commission earned a sharp rebuke from corruption watchdog Transparency International and the securities regulator eventually accepted the proposal.
This is the second time in February that DSE has approved the Chinese offer.
According to DSE Chairman Abul Hashem said the Chinese bid was selected after “rigorous scrutiny” said:
“Our focus was a long-term strategic relationship for a sustainable development of our capital market. After a rigorous scrutiny, we selected the Consortium of Shenzhen and Shanghai Stock Exchange.”
DSE was founded in 1954 and is Bangladesh’s premier bourse which has 303 listed companies with a market capitalization of $44 billion by the end of 2017.