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Bangladesh DSE sells stake to Chinese consortium; rejects India's offer

Press Trust of India  |  Dhaka 

Bangladesh's main 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, of the US and others.

The and officials inked the deal to acquire a quarter of the Dhaka Stock Exchange's (DSE) 1.8 billion shares, a DSE said.

"It is a historic day for Bangladesh's stock market," former DSE 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

Bangladesh's 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 Stock Exchange and Stock Exchange, which has bought 40 per cent stake of the

and 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 and stock market of the US took part in the bidding to become the DSE's partners.

A DSE 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 story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 21:20 IST