CSE looks for strategic partners in China, UAE, Hong Kong

Chittagong Stock Exchange (CSE) is looking for strategic partners in China, the United Arab Emirates (UAE) and Hong Kong to sell 25 per cent of its total paid up capital by December, as part of a regulatory requirement, reports BSS.

“We are working very hard to take strategic partners within the stipulated time for expediting the country’s capital markets. This will benefit the strategic partners and us too,” CSE Chairman Dr AK Abdul Momen told journalists after a meeting with Finance Minister AMA Muhith at secretariat in the city yesterday.

Among others, CSE Shareholder Director Major (Rted) Emdadul Islam, Independent Director Professor Mamtaz Uddin Ahmed and Managing Director M Shaifur Rahman Mazumdar were present at the meeting.

Abdul Momen said they discussed various issues, including development of the country’s capital markets, especially the CSE and the strategic partner.

“We can also take the local companies as the strategic partners. We think that if we can take strategic investors, the position of CSE will be better,” he added.

Shaifur Rahman Mazumdar said the total paid up capital of CSE is US $80 million and the CSE can transfer maximum $20 million to the strategic partners. But the total amount will depend on share prices, he added.

Emdadul Islam said, “We will have to finalise the deal by the next December. We will take the partners from among the highest and experienced bidders. If we get appropriate investors, we will sign deals before December.”

He said CSE has discussed with different investors of China, UAE and Hong Kong for signing deals with the potential strategic investors before the regulatory deadline (December).

Professor Mamtaz Uddin Ahmed underscored the need for creating awareness among the investors in the capital market to protect them from losses.

“We are arranging several awareness programmes in different areas across the country as the investors do not invest in the non-profiting companies,” he added.

As per the demutualisation scheme, which was approved by the Bangladesh Securities and Exchange Commission (BSEC) in September 2013, a strategic investor should have the experience of managing exchanges or a business so that the tie-up could form an effective synergy.

Foreign stock exchanges, banks, financial institutions, technology firms and institutional equity investors can be counted as strategic investors and they can purchase shares in Dhaka and Chittagong stock exchanges.

Though there are no specific criteria on the financial condition of a strategic investor, the value proposition needs to be balanced against strategic considerations, according to the rules of the scheme.

“Shareholders have created value for the exchanges over a long time. Hence, it is important to receive the right financial considerations to offload shares to a strategic investor,” according to the scheme.

CSE looks for strategic partners in China, UAE, Hong Kong

Chittagong Stock Exchange (CSE) is looking for strategic partners in China, the United Arab Emirates (UAE) and Hong Kong to sell 25 per cent of its total paid up capital by December, as part of a regulatory requirement, reports BSS. We are working very hard to take strategic partners within the stipulated time for expediting the countrys capital markets. This will benefit the strategic partners and us too, CSE Chairman Dr AK Abdul Momen told journalists after a meeting with Finance Minister AMA Muhith at secretariat in the city yesterday. Among others, CSE Shareholder Director Major (Rted) Emdadul Islam, Independent Director Professor Mamtaz Uddin Ahmed and Managing Director M Shaifur Rahman Mazumdar were present at the meeting. Abdul Momen said they discussed various issues, including development of the countrys capital markets, especially the CSE and the strategic partner. We can also take the local companies as the strategic partners. We think that if we can take strategic investors, the position of CSE will be better, he added. Shaifur Rahman Mazumdar said the total paid up capital of CSE is US $80 million and the CSE can transfer maximum $20 million to the strategic partners. But the total amount will depend on share prices, he added. Emdadul Islam said, We will have to finalise the deal by the next December. We will take the partners from among the highest and experienced bidders. If we get appropriate investors, we will sign deals before December. He said CSE has discussed with different investors of China, UAE and Hong Kong for signing deals with the potential strategic investors before the regulatory deadline (December). Professor Mamtaz Uddin Ahmed underscored the need for creating awareness among the investors in the capital market to protect them from losses. We are arranging several awareness programmes in different areas across the country as the investors do not invest in the non-profiting companies, he added. As per the demutualisation scheme, which was approved by the Bangladesh Securities and Exchange Commission (BSEC) in September 2013, a strategic investor should have the experience of managing exchanges or a business so that the tie-up could form an effective synergy. Foreign stock exchanges, banks, financial institutions, technology firms and institutional equity investors can be counted as strategic investors and they can purchase shares in Dhaka and Chittagong stock exchanges. Though there are no specific criteria on the financial condition of a strategic investor, the value proposition needs to be balanced against strategic considerations, according to the rules of the scheme. Shareholders have created value for the exchanges over a long time. Hence, it is important to receive the right financial considerations to offload shares to a strategic investor, according to the scheme.