After buying 40 percent stake in the Pakistan Stock Exchange, a news agency in Bangladesh has reported that a Chinese consortium which includes Shanghai Stock Exchange, Shenzhen Stock Exchange have proposed buying 25 percent stake into the Dhaka Stock Exchange for BDT 9.9 billion ($ 118.998 million).
The Chinese led consortium is expected to invest a sum of BDT 3 billion in the technological upgradation of the Exchange. Bangladesh Government had invited bids for partners after they float the shares in the Exchange.
According to the news outlet, participants from United States, India and other domestic companies from Bangladesh has submitted their proposals. The Chinese led consortium was found to be most attractive, according to one of the BSE Director.
The DSE Board is awaiting approval from the Bangladeshi Regulatory Authorities, the final decision is expected to take place on 15th of February. Shanghai and Shenzhen stock exchanges are among the top bourses in the world boasting $3.5 trillion and $2.2 trillion market capital, respectively. The market capitalization of Bangladesh Stock Exchange is over BDT 4.28 trillion ($51.42 billion).
According to the Bangladeshi Daily, Former DSE President Ahasanul Islam Titu thinks it will be a ‘watershed moment in the history of Bangladesh’s capital market’ once the two Chinese exchanges become partners of the DSE.
The members of the other consortium that took part in the bidding are India’s National Stock Exchange, Frontier Bangladesh and Nasdaq stock market of the US.
The DSE had floated tender for strategic partners in the past as well, but it was cancelled as the bourse considered the proposals by the local and foreign firms as unacceptable.