Bangladesh's securities regulator gave its initial approval for the Dhaka Stock Exchange to sell a 25% stake to a Chinese consortium comprising the Shanghai and Shenzhen stock exchanges, The Daily Star reported Feb. 27, citing DSE Managing Director Majedur Rahman.
The Bangladeshi bourse had submitted proposals from both the Chinese party and the National Stock Exchange of India Ltd. to the Bangladesh Securities and Exchange Commission, or BSEC.
BSEC has set up a committee to see if the Chinese bid complies with the country's 2013 Demutualization Act, with a report expected within 10 days. DSE would then have a year to complete the deal once final approval is given, Rahman said.
The Chinese consortium proposed a bid of 22 taka per share, for a total price of about US$122 million, as well as extra technical support worth US$37.1 million. It also plans to seek a DSE board seat though it is not expecting a return on its investment for 10 years, the publication noted.
Earlier in February, DSE's board picked the Chinese bid over NSE's offer of 15 taka per share.
As of Feb. 26, US$1 was equivalent to 83.09 Bangladeshi taka.