Just over five months after buying a BBVA bank from Scotiabank, the Spanish capital group said yesterday that the process of studying strategic alternatives began on a Forum, its automotive financing business in Chile.
"Among the alternatives considered in this process, the Forum is wholly or partially included, without suggesting that this process necessarily ends in sales", conducted by BBVA through a relevant fact sent to the National Market Commission of Securities in Spain.
He also said that the appraisal could continue a number of quarters. If the total was sold, this would mean the total departure of the Spanish group of the country, after selling its banking and sales business AFP Provida to Metlife in 2013.
In this way, the announcement of PULSO was confirmed in February this year, when it was said that the parent company had polished a buyer of the auto loan company and that it had been offered to Inversiones La Construcción (ILC ), and other stakeholders. , among these are banks and economic groups.
Is it attractive?
According to the calculations that have moved in the market, the company created in 1993 and received by BBVA in 2006 could get a price ranging from US $ 600 million to US $ 1,000 million.
The Forum is leading the automotive credit industry, with a market share of 33.1% in terms of alliances with automotive companies, which are far higher than the competitors (see and chart).
According to the 2017 report, its new loan locations at the end of last year amounted to $ 731,551 million, suggesting a 20.4% increase over the previous year.
Along with this, he had a share of 22.1% of new lightweight vehicles sold through loans.
In turn, between January and September 2018, the total gross loans was $ 1,353.001 million, rising 16.9% compared to the same period of the previous year. In addition, this figure is more than tripling the stock of credits with a nearest competitor in this aspect.
The lack of over 90 days in the Forum portfolio in the third quarter was 2.59%, while the arrears were more than 30 days at 6.43% in the same period.
He also has a network of 360 vendors and 650 sales points across Chile, where he has strategic alliances with 15 brands, including Nissan, Peugeot, Ford, Audi and Jaguar.
However, at the time Francisco Sardón, CEO of Scotiabank, said the company did not "sell it through the BBVA Spain decision. It's not a Scotiabank decision. If it's sold later, we will definitely evaluate it."
BBVA in Chile
If BBVA finally decides to sell Forum, the Spanish company would end up to 18 years in the country, considering it in 1999 when it came into the market on after buying BHIF Bank.
A year after landing in Chile, in 2000, AFP Provida, an assort that was abolished in 2013, was sold to MetLife for about $ 2 billion.
In 2006, it was paid around $ 53,000 million of time (which equates to about $ 55,700 million today) to enter the Forum property with 51%. In total, the company would have paid around $ 236,939 million to earn a 100% share.
In this way, considering that the auto-credit company had earned around $ 401,752 million from 2006 to 2017, BBVA went $ 302,375 million (considering it was participating in the property annually), a Spanish company succeeded Recover its investment in a Forum in less than a decade and already accumulate profits.