Govt opens process to appoint financial advisory firm for Nagad sale

The Bangladesh Investment Development Authority (Bida) has issued a Request for Expression of Interest (REOI) to appoint a financial advisory firm to sell Nagad, the country's second-largest mobile financial service (MFS) provider company.

The advisory firm will act as exclusive sell-side merger and acquisition adviser for a potential transaction, according to the public notice issued on 31 August.

Applicants have to submit Expressions of Interest (EOIs) by 15 September.

According to the notice, the selected adviser will assess and refine Nagad's positioning and value proposition, prepare marketing materials like a teaser, an information memorandum, and a management presentation.

The firm will also identify and approach potential strategic and financial buyers; coordinate and manage the due diligence process; provide valuation analysis and transaction structuring advice; negotiate key commercial terms in collaboration with management and legal advisers; deliver overall project management through closing; and address relevant issues needed to implement the assignment.

In addition, the financial adviser should outline how they would maximise competitive tension among potential buyers; develop a tailored sale strategy; advise on deal structure, timing, and tax implications; and manage confidentiality and communications with stakeholders.

Duration of employment will be three months, according to the notice.

In a recent event, Bangladesh Bank Governor Ahsan H Mansur said, "The Postal Department does not have the capacity to operate Nagad. We want tech companies to come forward and invest in Nagad. We expect to find new investors within the next three to four months."

Earlier, in an interview with TBS, the governor alleged that Nagad had been operating illegally for a long time. "The main violation is this: the post office is not a financial institution. It simply doesn't have the capacity to operate a tech platform like Nagad."

Finance Adviser Salehuddin Ahmed, on a separate occasion, also said Nagad will be restructured and handed over to a separate independent board. "It will no longer be operated by the Bangladesh Bank or the Postal Department – only the independent board will run it."

After the fall of the Awami League government, the Bangladesh Bank decided to appoint an administrator to manage Nagad on 21 August last year.

Besides, six individuals were appointed as "assistant officers" in the management of Nagad. The next day, the Bangladesh Bank and postal department officials went to the Nagad office and took control of the entire institution.

In February this year, the Bangladesh Bank filed a case against Nagad's former chairman, Syed Mohammad Kamal, ex-managing director and CEO Tanvir Ahmed Mishuk, and 22 others, accusing them of embezzling funds through fraudulent issuance of Tk645 crore in e-money without maintaining the required currency reserve.