A Chinese consortium has submitted bid for acquiring 25 per cent stake in Dhaka Stock Exchange for $119 million, reported a Bangladeshi news agency.
According to a report by Mettis Global (MG), the consortium includes Shanghai Stock Exchange, Shenzhen Stock Exchange which has a 40 percent stake in the Pakistan Stock Exchange.
The move by the Chinese consortium came after the Bangladesh government invited bids for partners by floating shares in the exchange. The consortium is expected to invest a sum of BDT3 billion aimed at the technological upgradation of the Dhaka Stock Exchange, reported MG.
India’s National Stock Exchange, Frontier Bangladesh and Nasdaq Stock Market of the United States (US) also took part in the bid and submitted their proposals but the Chinese consortium offered the most attractive terms, said one DSE Director, according to the MG report.
Shanghai and Shenzhen stock exchanges, with $3.5 trillion and $2.2 trillion market capital respectively, are among the top stock exchanges in the world. “The market capitalization of Bangladesh Stock Exchange is over BDT 4.28 trillion ($51.42 billion),” the report said.
Similar tenders for strategic partnership were floated by the DSE in the past as well, but couldn’t materialize as the DSE found the proposals by the bidders unacceptable.
The stock exchange currently awaits the approval of Bangladeshi regulatory authorities, and a formal decision in this regard is expected to be made in a fortnight.