By Mohamed Ahmed
Emerging Investment Partners for direct investment is in negotiations with a Egyptian transportation company to acquire a non-controlling share of 49% of the company’s capital through the EIP1 Fund, Wassim Heneine, Managing Director and Founding Partner said.
The EIP1 fund is specialised in investing in the small and medium companies in the markets of Middle East.
Heneine explained, in a statement to Daily News Egypt, that the initial value allocated to execute the deal is between $7m and $10m, and the deal will be executed through increasing the capital of the transportation company.
He added that his company is still involved in negotiations with the Egyptian investors to establish a new company, through a greenfield project, to establish a luxurious restaurants complex in Cairo through contributing by an expected share of about $4m.
Both the restaurants and transportation sectors are two of the most attractive economic sectors in the local market due to the high demand on them, in spite of the economic unrest in Egypt over the last four years, Heneine said.
In the same context, Heneine announced that they launched a new promotional tour for the EIP1 Fund targeting international investment institutions in order to double its capital from $25m to $50m.
He added that among the targeted companies are the International Finance Corporation (IFC), European Investment Bank, European Bank for Reconstruction and Development (EBRD), French Development Agency (AFD), and German Development Bank.
The EIP1 fund was founded in the early 2015, in cooperation with a number of Lebanese investment institutions.
The fund allocates 40% of its capital to invest in Egypt, while the remaining 60% is distributed across other Arab markets. It focuses on all the sectors except the real estate and building materials.
The fund targets achieving annual returns on its investments ranging between 20% and 25%.
