DSE board 'reconfirms' Chinese consortium bid

The board of directors of Dhaka Stock Exchange (DSE) has 'reconfirmed' its previous decision favouring the proposal of a Chinese consortium to become the strategic partner of the premier bourse.
After holding a meeting on Monday, the DSE board said it will soon seek regulatory approval in favour of its decision.
On February 10, the DSE board approved the proposal of the consortium comprising Shenzhen Stock Exchange and Shanghai Stock Exchange, which turned out to be the highest bidder for becoming the DSE's strategic partner.
Later, the DSE board allegedly came under pressure to consider the proposal of the second highest bidder. The National Stock Exchange of India (NSE) was second highest bidder.
After the board meeting on Monday, DSE Chairman Dr. Abul Hashem told the newsmen and shareholders that there is 'no scope' to alter their previous decision.
"We have not brought any change in our approval given to the proposal of the Chinese consortium."
He also said the DSE board has reconfirmed its previous decision to approve the Chinese consortium's proposal.
During the meeting, many DSE shareholders and some former board members gathered on the DSE premises to be informed of the board's decision.
DSE former president Ahmed Iqbal Hasan, former senior vice president Ahmad Rashid Lali, former directors Minhaz Mannan Emon and Khugesta Nur-E-Naharin, and president of DSE Brokers Association (DBA) Mostaque Ahmed Sadeque, among others, were present.
"Our previous approval to the proposal of Shenzhen Stock Exchange and Shanghai Stock Exchange has been re-confirmed at the board meeting," DSE managing director K A M Majedur Rahman told the waiting newsmen and shareholders.
He said DSE will take necessary steps as early as possible, and the proposal will be sent to Bangladesh Securities and Exchange Commission (BSEC) seeking its approval.
Asked about any possible change from the regulatory end, the DSE chairman said the board will take decision based on discussion if there was any such development.
DSE director and former president Rakibur Rahman said all its independent directors played a very important role for the interest of the shareholders.
The DBA president said the exchange's shares are their property.
"So, the shareholders' interest should be ensured while taking any decision," Mr Sadeque told the newsmen.
Earlier, the Chinese consortium qualified in the bidding for becoming DSE's strategic partner as the highest bidder.
The consortium offered Tk 22 per share for 25 per cent of the DSE's total shares. It also offered technical support worth nearly $37 million for free.
The other consortium, led by NSE, was the second highest bidder. It offered Tk 15 per share for 25.01 per cent of the DSE's total shares.
They also wanted two posts on the exchange's board although the demutualisation law created only one post for a strategic partner.
Besides, it was not mentioned whether the technical offer of the NSE-led consortium would be availed without any payment.
The DSE officials said the NSE-led consortium also wanted the scope to exit after five years.

[email protected]