A new horizon opens in economy as ABG, CSE sign deal

 

Live Correspondent: A new horizon has opened in the country’s economic arena with the signing of a landmark agreement, paving ways for investors to explore untapped potentials of commodity exchange and other new avenues.

For the first time in the history of the country’s capital market, a Bangladeshi company, ABG Limited, has shown its confidence to become a strategic partner of any bourse by fulfilling all the necessary regulatory compliances and leaving a signature of the strong footing of the private sector.

The ABG Limited, a sister concern of Bashundhara Group, officially started its journey as a strategic partner of the Chittagong Stock Exchange (CSE) by signing an agreement on Sunday.

CSE acting Managing Director Md Ghulam Faruque and ABG Limited Managing Director Sayem Sobhan Anvir signed the agreement on behalf of their respective sides at a grand ceremony at Radisson Blu Chattogram Bay View Hotel in Chattogram.

Shenzhen Stock Exchange and Shanghai Stock Exchange of China 2018 became strategic partners of the Dhaka Stock Exchange but no Bangladeshi company had dreamt of becoming a strategic partner for the bourse.

ABG Limited is a company of Bashundhara Group, one of the largest industrial conglomerates in the country.

By this agreement ABG Limited is now the owner of 25 percent of shares of CSE and the company will act as the strategic investor of the capital market. ABG Limited will provide its support to CSE as a strategic partner.

Land Minister Saifuzzaman Chowdhury was present as the chief guest at the ceremony.

Addressing the program, he said, “A new horizon has opened up in stock markets as a local company, ABG Limited, has become a strategic partner of the Chittagong Stock Exchange. The company has shown the courage to bring experts and technology from abroad. I hope this initiative will be successful.”  

Salman F Rahman, Private Industry and Investment Adviser to Prime Minister, Chattogram City Corporation (CCC) Mayor Rezaul Karim Chowdhury, Deputy Minister for Education Mohibul Hasan Chowdhury Nowfel, Bangladesh Securities and Exchange Commission Chairman Professor Shibli Rubayat-Ul-Islam, and Bashundhara Group Chairman Ahmed Akbar Sobhan were also present as special guests.

Salman F Rahman appreciated the risky moves taken by the BG over the last few years.“They became successful by taking such risky initiatives in the past.

Later, many business groups followed in their footsteps. I hope, similar success stories may be repeated this time too,” he said. 

CSE Director Major (Retd) Emdadul Islam gave the welcome speech with CSE Chairman Asif Ibrahim in the chair.

Bashundhara Group Co-Chairman Sadat Sobhan Tanvir and Rupayan Group Chairman Liakat Ali Khan Mukul, among others were also present on the occasion.

The CSE was established in 1995. Currently, its paid-up capital is Tk634.52 crore and the number of shares is 63.45 crore.

According to the Demutualisation Act, there is an obligation to sell 60pc shares among strategic, institutional, and general investors.

Of those, 25pc of the stock exchange’s total shares will have to be sold to strategic investors. After that, the remaining 35pc will have to be sold to general and institutional investors.

CSE paid a 4pc cash dividend to its shareholders for the financial year 2020-21.

Bashundhara Group Chairman Ahmed Akbar Sobhan said Bashudhara Group always stands firmly for the development of the country and its people by taking courageous business initiatives.

“We always take courageous initiatives and have been doing so over the years. The group always stands by the country for its development,” he said. 

The BG chairman said that Father of the Nation Bangabandhu Sheikh Mujibur Rahman gave us an independent country, paving a way for us to do business.

“He could not fulfill his dream. But, now we have got the prudent leadership of his daughter Prime Minister Sheikh Hasina who has been leading the country to development,” he said.

Hailing the country’s ongoing business atmosphere, he said they went for setting up a gold refinery and dreaming to earn huge foreign currency from the sector.

“If the project sees a success, the industry will surpass the export earnings of the readymade garment sector in near future,” he said.

BSEC Chairman Shibli Rubayet-Ul Islam said the country’s economy is moving forward with the vibrant performance of the money market and capital market.

“We have dynamic business leaders in our county who are supporting the economy by generating employment for millions of people with their wisdom and talent. Through signing the agreement of strategic partnership, we will address the missing link of the commodities exchange in the capital market,” he said.

The stock regulator chief believes the introduction of commodity exchange will solve the problems of over and under-invoicing in commodity trading in the country.

Deputy Minister Mohibul Hasan Chowdhury said the government has kept trust in entrepreneurs to lead the country’s economy to the next level of development.

“We have to ensure good governance in every sector, including the capital market to gain the trust of common investors. As representatives of the general people, we request the regulator to secure institutional investment in the commodity exchange. There is no alternative to work together with government and market regulators,” he said.

CSE Chairman Asif Ibrahim termed the day a historic one for Bangladesh's capital market as Bashundhara Group’s sister concern, ABG Limited, becomes a strategic partner of the Chittagong Stock Exchange.

“Under the leadership of Prime Minister Sheikh Hasina, Bangladesh has graduated from a least developed country to a developing one. We are moving forward through a transformation in our economy. Bangladesh is on its way to becoming the next Asian tiger,” he said.

East West Media Group Director and noted novelist Imdadul Haq Milan listed various pro-people activities of the Bashundhara Group, including its assisting the underprivileged people during the lockdown amid corona pandemic, standing by winter hit people, providing financial support to the indomitable talented students and supporting women empower.    

“Bashundhara Group always believes that country’s betterment depends on the welfare of the people. It thinks that if the betterment of the people is ensured, the country’s progress can be ensured,” he said.

Dhaka, 20 November (campuslive24.com)//BL

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