BDO Leasing divests in auto financing firm

MANILA, Philippines — BDO Unibank Inc. is divesting its interest in a joint venture company which provides financing to individual and corporate buyers of Mitsubishi vehicles in the country.

The board of directors of  BDO Leasing and Finance Inc. has approved the disposition of its 40 percent stake in MMPC Auto Financial Services Corp.(MAFS) to focus more on its core business of equipment leasing and finance.

The leasing and financing arm of the country’s largest bank is selling its three million shares in MAFS at P55.21 per share to JACCS Co. Ltd. The transaction is subject to the approval of the Philippine Competition Commission (PCC).

“This will allow BDO Leasing to focus more on its core business of equipment leasing and finance,” the company said.

MAFS is a joint venture between BDO Leasing and JACCS, Sojitz Corp., and Mitsubishi Motors Philippines Corp. (MMPC) that was established in 2016.

JACCS, Sojitz and MMPC controlled the joint venture company with a 60 percent stake, while BDO Leasing owned 40 percent.

JACCS is a Japan-based company engaged in consumer credit services, while Sojitz is a Japan-based general trading company.

“The transaction is in line with JACCS’ decision to expand its investment in MAFS as part of its strategy to accelerate the growth of its overseas business,” BDO Leasing said.

MMPC is also selling its remaining five percent stake in MAFS to JACCS.

As a result, JACCS will have a controlling interest of 65 percent in MAFS, while Sojitz is retaining its 35 percent stake.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association Inc. showed vehicle sales slumped 16 percent to 357,410 units last year.

Passenger car sales plunged 21.8 percent to 109,020 units while commercial vehicle sales fell 13.2 percent to 248,390 units.

Toyota Motor Philippines Corp. remained the leading automotive brand with a 42.8 percent market share last year followed by MMPC (18.9 percent), Nissan Philippines (9.8 percent), Ford Motor Co. Philippines Inc. (6.6 percent) and Honda Cars Philippines (6.5 percent).