Saturday , February 4 2023

BBVA will end its presence in Chile. Now he puts auto-financing for sale


More than five months after the acquisition of BBVA Bank by Scotiabank, the Spanish capital announced yesterday that it has begun the process of studying strategic alternatives to the Forum, its financial business in Chile.

"Between the alternatives envisaged in this process involved the full or partial sale of the Forum, and not implying that this process will necessarily end up in sales," BBVA maintains through a relevant fact addressed to the National Securities Market Commission in Spain.

In addition, he said that the assessment could last a few quarters. If the total sales were made, this would mean the total exit of the Spanish group from the country after selling its banking business and selling AFP Provid to Metlife in 2013.

In this way, what PULSO announced was confirmed in February this year when it was indicated that the parent company engaged a buyer for a car loan company and that it offered Inversiones La Construccion (ILC) and other interested parties. , including banks and economic groups.

Is it attractive?

According to the calculations that appeared on the market, the company created in 1993, purchased by BBVA in 2006, could have a price ranging from 600 to 1,000 million US dollars.

The forum runs the automotive credit industry, with a market share of 33.1% in terms of the alliance with automobile companies, far outstripping its competitors (see chart).

According to a report from 2017, new placements at the end of last year amounted to $ 731,551 million, an increase of 20.4% over the previous year.

In addition, it had a share in the sale of new light vehicles of 22.1%, which were obtained through loans.

In turn, between January and September 2018, total gross loans amounted to $ 1,353,001 million, up 16.9% from the same period last year. Added to this, this figure is more than a triple amount of a loan that has its closest competitor in this aspect.

By default, over 90 days in the Forum portfolio in the third quarter was 2.59%, while overdue debts of more than 30 days were 6.43% in the same period.

It also has a network of 360 traders and 650 sales outlets throughout Chile, where it has strategic alliances with 15 brands, including Nissan, Peugeot, Ford, Audi and Jaguar, among others.

In any case, at the time, Francisco Sardon, director of Scotiabank, said the company "was not put up for sale by the decision of BBVA Spain, not by Scotiabank's decision." If it is later sold, we will certainly be assessed. "

BBVA in Chile

In the event that BBVA finally decides to sell the Forum, the Spanish company would end 18 years in the country, since it entered the market in 1999 after the purchase of the Banco BHIF.

One year after landing in Chile in 2000, it bought AFP Provida, an asset that was disbanded in 2013 when it was sold to MetLife for about $ 2 billion.

In 2006, she paid around $ 53,000 million (equivalent to about $ 55,700 million today) to enter the Forum's assets with 51%. In total, the company would pay around $ 236.939 million to buy 100% of shares.

In this way, since the car loan company earned around $ 401,752 million in the period from 2006 to 2017, of which $ 302,375 million went to BBVA (this, given the share in assets for each year) , the Spanish company managed to recover its investments in the Forum in less than a decade and already accumulates profits.

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