Bank of the Philippine Islands’ joint venture partner Tokyo Century Corporation (TCC) has decided to take majority control of BPI Century Tokyo Lease & Finance Corporation (BPICTL).
In a disclosure to the Philippine Stock Exchange, the bank said TCC will acquire an additional 2 percent of the issued shares of BPICTL to increase its equity stake to 51 percent.
“With TCC as majority shareholder, this allows the joint venture to optimize the value of TCC’s expertise in the full service operating lease industry while capitalizing on BPI’s customer base,” BPI said.
On November 9, 2020, the TCC Board of Directors decided to increase its stake to 51 percent, effectively taking a majority interest in the joint venture. On November 18, 2020, BPI Board of Directors approved the acceptance of the offer.
Final execution of the transaction is subject to requisite approvals and documentation. The transaction is expected to close before the year ends.
In 2014, BPI entered into a strategic partnership with TCC, one of the largest leasing companies in Japan, to form BPICTL, with BPI retaining 51 percent of ownership.
This strategic partnership allowed BPI to innovate in asset financing products and enhance the service experience of an expanding base of Philippine consumers and corporations seeking asset leasing and rental solutions.