A H Khan

Published:
2018-09-02 11:53:56 BdST

Chinese Consortium's money is coming tomorrow


The Chinese Consortium of Shenzhen-Shanghai Stock Exchange signed a formal agreement to buy 25 percent shares of the Dhaka Stock Exchange (DSE) at Tk 947 billion as a strategic partner on May 14. At the end of various formalities of the legal and regulatory bodies, Chinese Consortium is on the verge of becoming the strategic partner of DSE. Tomorrow, the share sale money coming from China to Bangladesh. The next day, after the transfer of shares and understanding the money, the process of selling the DSE shares is being concluded officially with the strategic partner.

DSE director Minhaj Mannan Imon told the trader that the Chinese Consortium will send money to the open account of Standard Chartered Bank on 3 September. The next day, they will be transferred to the DSE accounts in the City Bank. On the same day, 25 percent of DSE's shares will be left as the Chinese consortium's BO opened at CDBL. DSE on Wednesday will formally discuss the matter with the press conference at noon.

Earlier on August 26, the central bank allowed the Chinese Consortium to send money through non-resident investors' money accounts (Nita) to DSE as a strategic partner on August 26. Basically, the account is used to bring the foreign investment money into the company listed in the capital market and send dividend received against this investment abroad. But DSE is a non-listed company, the Chinese Consortium asked the central bank to send its money to buy its shares through the Nita account in Bangladesh.

DSE Managing Director KM Majedur Rahman said, "DSE is an unmarked company. However, according to the demutualization of the stock exchange (ownership separation from management) scheme, the strategic partner has the obligation to sell the shares and sell the shares through initial public offering (IPO). As a strategic partner, we have fulfilled an obligation by selling shares to the Chinese Consortium. DSE shares will be sold in front of IPO. Considering these aspects, in spite of being a non-listed company, the central bank has allowed the Chinese Consortium to pay the DSE shares to buy the Nita account in the context of our application.

Meanwhile, officials of DSE and Chinese Consortium are currently busy working on the transfer of money and shares. Members of the Chinese Consortium will arrive in Bangladesh today and tomorrow. DSE board meeting has been called on Tuesday morning. In this meeting, formalities for the transfer of money and share of strategic investment between the representatives of DSE and Chinese Consortium will be completed. The Vice Chancellor of the Shenzhen Stock Exchange's Technical Management Committee, Shi Wenhai will be the director of the DSE board as the representative of the Chinese Consortium through this meeting.

On the other hand, the DSE shareholders will have to pay a capital gain tax of 142 crores to 15 percent on capital gains arising due to transfer of shares in accordance with the Income Tax Ordinance for sale of around 947 crores to the Chinese Consortium. However, the shareholders of the exchange are seeking capital gains tax on the terms of investment in the capital market due to capital gain in the interests of the market. Though the proposal was made by the DSE Brokerage Association (DBA) to the finance minister, no decision has been made so far.

In fact, on February 6 this year, DSE unveiled a tender box with strategic partners. In the process of tendering, two consortium proposals were submitted for strategic partner for DSE, one-fourth or 45 crore 9 lakh 44 thousand 125 shares of 180 crore 37 lakh 76 thousand 500 shares. Meanwhile, Chinese Consortium of Shenzhen and Shanghai Stock Exchange proposed to invest Rs 992 crore in shares of DSE for Tk 22 per share. Outside, they pledged to provide free technical and technical support to DSE, which is worth 308 crores. However, in the interim period, the shareholders' cash dividends for the last accounting year reduced the valuation of each share of the DSE, which was reduced to 1 paisa, which was adjusted in the final share purchase agreement (SPA). As a result, DSE will get Tk 946 crore 98 lakh 26 thousand 625 as per the share price of the company for selling shares to Chinese Consortium.

Under the proposed Technical Support of Chinese Consortium, DSE's trading and surveillance system modernization, Business Process Management (BPM) system consulting plan, Consulting service for bond tender system, Consulting system plan for information disclosure system, Data center and co-location consultancy service plan, FDEP And the Financial Cloud The technology transfer plan has been talked about. The Chinese Consortium will offer 10-year licenses and three-year training and consultancy services for these technical technologies. Outside, they offered to take steps to introduce more new products and market development.

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