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Wednesday, 26 August 2020

Odin to set up 2 investment funds worth EGP 1 bn by next month

M&A WATCH- Odin Capital to set up EGX equity, VC funds worth a combined EGP 1 bn by September: Odin Investments is hoping to close on its EGP 500 mn joint fund with Saudi’s Kasb Capital to invest in Egyptian equities and launch it by next month, Odin’s Deputy Chairman Hashem El Sayed tells Al Mal. Odin will hold a 55% stake in the new fund, while Kasb will own 45%. Odin also said last week it plans to separately form a venture capital fund, which El Sayed said will also be worth EGP 500 mn. He expects the fund to be ready to launch in September as well. The VC fund is expected to hold majority stakes of over 51% in the companies it will invest in, says El Sayed (although we’re not sure startup founders nowadays are willing to give up that much ownership). El Sayed wasn’t clear on where these investments will be deployed, except to say that they are looking to invest in manufacturing, and are already eyeing two acquisition prospects. Odin’s latest activities include an intention to buy El Nasr Civil Works from MNHD.

Both are part of four funds Odin plans to establish, for which they are currently seeking approval from regulators, according to a bourse filing last week (pdf). These include a fund that will invest in SME financing companies, and another PE fund specializing in edutech. The size of the other funds was not disclosed.

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