DHAKA, Feb. 27 (Xinhua) -- A Chinese consortium's bid to acquire 25 percent stake in Bangladesh's biggest stock exchange and become its strategic partner has been given the green light by the country's regulator.
Dhaka Stock Exchange (DSE) Managing Director Majedur Rahman told Xinhua on Tuesday that BSEC (Bangladesh Securities and Exchange Commissions) has given its go-ahead in favor of the Chinese consortium.
He said BSEC is now merely evaluating the Chinese investment proposal which they sent to the regulator last week.
The DSE board on Feb. 10 approved the proposal of the Chinese consortium but reportedly faced pressure to reconsider the proposal of the second highest bidder- the National Stock Exchange of India (NSE). Against this backdrop, a DSE board again in a meeting on Feb. 19 unanimously approved its previous decision which confirmed the Chinese consortium's proposal.
DSE's hunt for a strategic partner comes as it turned into a demutualised stock exchange on Nov. 21, 2013. The DSE in June last year floated tender and received proposals including those two Chinese and Indian consortiums.
A DSE official who preferred to be unnamed said in consideration of all the aspects the the proposal of the Chinese consortium was the best offer in terms of value and technical support.
The Chinese consortium offered 22 taka per share for 25 percent of the DSE's total shares and asked for a seat on the board.
It also offered technical assistance worth nearly 37 million U.S. dollars and added that it would not seek any return on its investment for a period of 10 years.
On the other hand, the other consortium, led by NSE, offered 15 taka per share for 25 percent of the DSE's total shares. The Indian consortium reportedly wanted two posts on the exchange's board although the denationalization law created only one post for a strategic partner. Apart from this, the Indian consortium offered technical support, but it did not clarify how much money it would spend. (1 U.s. dollar equals about 83 taka).