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BXP completed the acquisition of 55% of Sanofi Bangladesh this week and the price over in Dhaka has almost recovered to the peak of around 10 days ago.
There has also been a small currency movement I think which makes the current price in Bangladesh equivalent to around 211p. We continue to sit at 95.5p or 45%.
The results are around a month away and I just hope that triggers a wider realisation of the discrepancy here.
Now trading at around 45% of the parent price. If you argue that the Dhaka price has gone a bit mad and say knock 20% off it, then the equivalence is still under 60% here.
Indian pharma companies Cipla (which I acknowledge is far larger than BXP) and Nectar Lifesciences both list a GDR in Luxembourg and they trade at parity to the parent share price.
… Great piece of research Suggins. Thanks for sharing it with us. I’m in here too and I find it frustrating that they are still under £1. Maybe your idea of loading up more why the price is low is the answer.
I have been trying to find reasons not to invest more here but I am struggling.
I have just noticed that the vice chairman of BXP is also the Bangladeshi prime minster's industry advisor and has just been sent to Saudi Arabi to conclude a trade deal for the Country so is clearly operating at the highest level of government. The ruling party in Bangladesh obtained 75% of the vote in their last election in 2018 so being close to the current ruling party doesn't seem likely to count against anytime soon. With the Sanofi purchase they are now also directly in business with the government and so it is hard to imagine a more secure company from a political point of view.
Now at 236 Tk in Dhaka which equates to Two pounds exactly. Share price here is slowly increasing but still a massive gap. Having said that, the days of purchases under a pound per share on the LSE are likely to soon be over. Have increased my position over the last few weeks and now happy to sit back and watch. Results and dividend/bonus shares info will be out at the end of next month.
Up a further 5.13% on Dhaka exchange today.
You must be right Winnings; down to 48% ish equivalent value again. This surely represents a truly excellent opportunity.
Up again in Bangladesh today. The GDR price gap here is bund to narrow as it will become increasingly clear to us
that Bangladesh is not a backward and unrelable country where there are no safe and sound well managed
Copanies. In my view the there is a greater prospect of Banglaesh make strides of progress than there for the
UK where labour costs have risien or are rising out of the pan.
Small dip over in Bangladesh today but nothing significant given the recent rise.
I am just hoping the differential narrows by a GDR increase rather than a drop in the Dhaka price which has already stormed up to an all time high recently on apparently nothing but sentiment.
Sorry, I posted much the same message twice, - reason being my first message did not appear
to start with (delayed somehow).
Up almost 4% on Dhaksa stock exchange to Take 224, which translate into GBP 190.5p.
Our BXP-GDR shares receive the same Dividends as the BXP-Ordinary shares traded in
Bangladesh, so the extraordinary wide price-gap is in my view bound to narrow over
time.
BXP up 3.8% today on Dhaka stock exchange to Taka 224.10 , which translates into GBP 190.6 pence.
Bangladesh-based investors seem to have become very keen on the shares lately. Good sign, bodes
well for our BXP-GDR shares, which - by the way - are entitles to exactly the same dividends as the
Ordinary shares trraded in Bangladesh. Difference is that the GDR's are not permitted to trade on the
Dhaka stock exchange, nor do they have voting rights - but the same dividends as Dhaka traded
Ordinaryshares...
Looks to me that the extrordnary wide price gap can not last forever - it shouts Opportunity in
my view. I am well invested, intend to hold for the long term, very long term.
Sadly short lived correction. Down 2% here, up 2% there so pretty much back where we were. But I suppose at least something finally moved the priced.
Looks like the massive discount is beginning to get noticed, a good number of buyers and a decent rise today.
A long way yet ahead though.
On the up again over in Bangladesh; the GDR now under 50% of the parent share price. There must be an explanation.
The GDR price reached a high of 107p in January when the parent share price was an equivalent of 168p which was around 63%. If we had kept that level of equivalence we would have a price of around 112p today not 86.5p!
Hi Winnings; I thought something was going to happen with the rise in price and volume last week but now I am more inclined to go with Realraster's view that this is just moving with the local market.
Will this pick up in interest in Bangladesh translate to any change here ? Seems unlikely to me given the recent track record but you never know.
General lift in Dhaka and Chittagong exchanges, all pharma and most other companies are rising.
Still rising in Dhaka, up 3% this minute....something afoot...?
Still blundering ; correct figure : 174 pence ( which is 102% above share price here).
Sorry , typing error : correction to 104.7 pence.
Just now Taka 204.70 - equating to 204.7 pence.
Share price in Dhaka 2% higher today...something afoot...? There is quite some catching up to do here.
This is still £1.70 equivalent price in Bangladesh but no sign of any action over here. The Taka also seems to be at a near 5 year low against the pound so there seems lower risk on the currency side.
The mystery continues. I emailed the companies nominated broker on this issue but no response.
Closing price in Dhaka today, firmly up, to: Taka 200.3. Translated to GBP: 171.6p
The day of closing the gap between the price of our GDRs and the price of ordinary
shares in Bangladesh can not be eternally away. Our GDRs which cannot be traded
in Bangladesh and carry no voting rights, do however carry precisely the same
rights to Dividends as the ordinary shares in Bangladesh.
Wakey, wakey...