Mitsubishi Corporation Announces Entry into Fleet Leasing Business in Turkey
2008-08-28 10:45:04 -
Tokyo, Aug 28, 2008 - (JCN Newswire) - Mitsubishi Corporation (MC) and Mitsubishi UFJ Lease & Finance Company Limited (MUL) have agreed to make a 45% investment in Ekim Turizm Ticaret Ve Sanayi A.S.(Intercity), the first and the leading fleet leasing company (corporate operating leasing with fleet maintenance services) in Turkey, thereby entering this country's fleet leasing business.
Outline of Business
Emerging nations such as Turkey have been growing more rapidly than developed countries. However, in most emerging nations, financial infrastructure and intermediary functions have yet to fully develop. Partners MC and MUL expect to see strong demand in the financial sector, especially in leasing services, a finance scheme intermediated by
"assets".
MC and MUL will promote asset finance through their Intercity investment, which has the largest market share in fleet leasing business in Turkey. The partners expect to make a good return on their investment and raise Intercity's corporate value. At the same time, this investment will contribute to economic growth in Turkey.
Following this share acquisition, the shareholder structure of Intercity will be as follows, to go into effect following the completion of anti-trust filing in Turkey and Europe.
Mr. Vural Ak (Founder of Intercity) : 51%
MC : 25%
MUL : 20%
International Finance Corporation (IFC) : 4%
Function of MC and MUL
Finance business is one of the main focuses of MC.
This project is a part of MC's core finance business strategy, and MC plans to support the management of Intercity by providing its knowledge of trading and global network.
Meanwhile, one of the key strategies at MUL is global operational presence. This project will accelerate development of business activities in emerging nations, while MUL provides its leasing expertise to Intercity.
In addition, MC and MUL have made a joint investment in Mitsubishi Auto Leasing Corporation (MAL), which is a leading auto leasing company in Japan. Through the joint investment, MC and MUL have been accumulating management know-how in the auto leasing business. This know-how in Japan will be utilized to support diversified management for the further growth of Intercity.
MC and MUL also plan to dispatch employees to Intercity. By doing so both companies will strengthen and expand their business, while looking to accumulate knowledge of finance projects in Turkey and the neighboring area.
Intercity's business activities and strategy
As a growing services industry brand, Intercity is playing a very important role in the development of the overall economy in Turkey in all industries by helping its clients to allocate their resources in a more efficient manner. By providing a high quality and sustainable service with respect to fleet management, Intercity is assisting its clients to focus on their core businesses and hence improve their performances.
In its quest to become a flagship company countrywide and eventually increase its operations in the neighboring regions, Intercity is honored to become a part of this venture, making a strategic partnership with two of the largest and most reputable Japanese organizations, namely MC and MUL. Intercity joins MC and MUL with great hopes and belief for the up-and-coming partnership which will enable Intercity to expand its already existing leadership position in the market.
Intercity, together with MC and MUL, will focus on extending this role further by blending the global know-how of MC and MUL with its own local expertise gained over the last 16 years.
Currently, the partners are targeting an aggressive growth strategy, which will bring the company to a level of a large sized non-bank financial institution. Successful execution of this strategy shall provide significant cash inflow for the country's public finances at the same time.
IFC's Role
MC's and MUL's investment in Intercity is supported by IFC, as it will contribute to economic development in Turkey. IFC is a long standing partner and shareholder of Intercity since 2005.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.
Future Business Development
Entry into Turkey's fleet leasing business is part of the global strategy on leasing business employed by MC and MUL, and follows their entry into general leasing business in Saudi Arabia. Utilizing this experience and know-how, the partners will aggressively expand this business into other promising regions around the world.
Intercity Company Profile
Head Office : Istanbul, Turkey Representative : Vural Ak, Chief Executive Officer Year Established : 1992 Business Activity: Fleet leasing (Corporate operating leasing with fleet maintenance services) Financial Data : Net Sales US$ 105.6million Net Profit US$ 21.6million Total Asset US$ 531.8million Fleet 21.4 thousand units (All financial data is as of the end of 2007) ]]>
About Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058; ADR: MSBHY) is Japan's largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Together with its over 500 group companies, Mitsubishi Corporation employs a multinational workforce approximately 55,000 people. The Group has long been engaged in business with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise. Mitsubishi Corporation's commitment to social responsibility is embodied in its corporate philosophy and demonstrated through its extensive programme of cultural, environmental and educational projects worldwide. For more information, please visit www.mitsubishicorp.com .
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