La Mancha Holding, a subsidiary of businessman Naguib Sawiris, established a long-term investment fund based in Luxembourg, mainly specialized in the field of gold mining.
The newly –established fund manages assets worth more than $ 1.4 billion, and La Mancha Capital Advisory will be the advisory office for the fund.
Sawiris issued statement that said the step of establishing an investment fund is the natural result of what have been done since 2015, of selling and operating assets of Evolution and Endeavor Companies in return for capital shares.
The statement added that establishing a fund and opening the way for new investors comes at the right time, and we expect many opportunities in the gold mining sector, which is still fragmented and needs more mergers."
In a related context, the Financial Supervisory Authority (FSA) is studying requests to launch two funds for moveable values in gold, including a request submitted by Dr. Sameh Al-Torgoman, former Chairman of the Board of Directors of the Egyptian Stock Exchange, and a request from the Naeem Holding Company for Financial Investments.
The two companies are awaiting the approval of the FSA to start the launch, and they plan to expand this type of activities, during the coming period, with new ideas and proposals on the capital market.
Movable value funds faced difficulties in launching their activities due to tax transactions, which were discussed with the Ministry of Finance to standardize their treatment with fixed income funds and cash funds.
Movable value funds work to provide liquidity to sectors that own gold assets, most of which are movable, by securitizing financial rights over them and what is required for partnerships with companies working in the field on which the fields are securitized.
In 2008, Naeem Holding Company was seeking to establish the first investment fund in gold with a capital of EGP 500 million, and it was planning to play the role of market maker for the first Egyptian investment fund in gold, according to the rules of trading index documents approved by the Capital Market Authority at the time.
Translated by Ahmed Moamar
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