Govt initiates process to seek investor for Nagad

The government has started the process of seeking new investors for Nagad, the much-talked-about mobile financial service provider (MFS).

Early this week, the Bangladesh Investment Development Authority (BIDA) has sought applications from a financial advisory firm to act as an 'exclusive sell-side Mergers & Acquisitions adviser for a potential transaction' related to Nagad, an MFS under the Bangladesh Post Office.

The firms have been advised to submit their applications by September 15.

The BIDA said the selected adviser will be expected to 'assess and refine Nagad's positioning and value proposition.'

"The firm will need to prepare marketing materials, identify and approach potential strategic and financial buyers," said the BIDA in the advertisement seeking an Expression of Interest (EOI) from firms.

A senior BIDA official said a high-level meeting recently approved the transition of Nagad into the private sector, leading to BIDA's involvement.

The initiative comes as the Bangladesh Bank (BB), the regulator, finds that the Directorate of Posts does not have the capacity to run Nagad efficiently, making it necessary to bring in new investors.

Hence a competent institution needs to take over, said BB Governor Ahsan H Mansur earlier.

At an event last week, Mansur said various irregularities caused by the previous owners have been resolved.

Nearly 15 million fake or inactive accounts have been removed, and the institution is now on the path to restructuring.

Significant reforms have already been implemented in Nagad, he said.