China expects a fair deal in its investment plan in DSE | 2018-03-22 |

China expects a fair deal in its investment plan in DSE

Sun Online Desk     22nd March, 2018 06:18:30 printer

China expects a fair deal in its investment plan in DSE

China wants to see ‘fairness’ instead of politicisation in China's planned investment in the Dhaka Stock Exchange Ltd and buy its 25 percent stakes.


“Chinese side believes that this is a completely commercial investment project and hopes it won’t be politicised and deliberately to be used against China by discrediting China’s image,” a Chinese Embassy spokesperson said, reports UNB.


The official said the Shenzhen Stock Exchange was invited by the Dhaka Stock Exchange to participate in the bidding for strategic investor of Dhaka Stock Exchange.


According to the bidding results, the official said, the Chinese consortium's offer has been far better than other bidders.


“It is hoped that Bangladesh’s relevant authorities will select the best partners on the principle of fairness, mutual benefit, and win-win cooperation and be accountable to investors,” said the spokesperson.


On Monday, the Bangladesh Securities and Exchange Commission sought a revised proposal from the Chinese consortium for 25 percent stakes of the DSE to accommodate all the amendments the stock market regulator had suggested.


Earlier, the consortium of Shanghai Stock Exchange and Shenzhen Stock Exchange has agreed to withdraw most of its terms and conditions to avoid contradiction with the laws of the land.


The stock market regulator now wants them on the official document that would be signed.


The DSE is likely to hold a board meeting and also an extraordinary general meeting soon on the matter, sources said.


The Chinese consortium proposed to purchase 45 crore shares of the DSE for Tk 22 each and become its strategic partner. It also offered technical support worth $37 million (about Tk 300 crore).


In exchange, it sought a seat at the DSE board and assured that it will not ask for any return on its investment for 10 years.


The Indian consortium led by the National Stock Exchange of India offered to purchase the same number of shares but for Tk 15 each.