Bangladesh's main stock exchange today signed an agreement to sell its 25 per cent stakes to a Chinese consortium, formally rejecting a rival bid from India's National Stock Exchange, Nasdaq of the US and others.
The Shenzhen Stock Exchange and Shanghai Stock Exchange officials inked the deal to acquire a quarter of the Dhaka Stock Exchange's (DSE) 1.8 billion shares, a DSE official said.
"It is a historic day for Bangladesh's stock market," former DSE President Shakil Rizvi said.
"The DSE is going to become a multinational company through this, which will also boost other business. It will have a positive impact on the overall economy," he was quoted as saying by bdnews24.
The DSE accepted the Chinese consortium's offer as it found their offer "more attractive", according to a DSE director.
Bangladesh's premier bourse directors had decided to accept the Chinese consortium's proposal on February 10 as it looked acceptable to them considering financial and technological aspects.
The DSE board gave its final nod to the proposal by the consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange, which has bought 40 per cent stake of the Pakistan Stock Exchange.
Shanghai and Shenzhen stock exchanges were among the top bourses in the world boasting USD 3.5 trillion and USD 2.2 trillion market capital.
The market capital of the DSE is over USD 51.42 billion.
Another consortium of India's National Stock Exchange, Frontier Bangladesh and Nasdaq stock market of the US took part in the bidding to become the DSE's partners.
A DSE official had said that the Mumbai-based National Stock Exchange had offered 15 taka (USD 0.18) per share to buy 25.1 per cent shares of the DSE.
Officials said the Chinese consortium has proposed buying 25 per cent stakes into the DSE for Tk 9.9 billion (USD 122 million) at Tk 22 per share. In its proposal, the consortium mentioned it will spend over Tk 3 billion (USD 37 million) to give the DSE a technological upgrade.
According to the 2013 demutualisation scheme, 25 per cent of the 1.8 billion shares of the DSE will be sold to strategic partners, 35 per cent to small investors while 40 per cent will be with the Trading Right Entitlement Certificate or TREC holders.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)