JEDDAH - Mitsubishi Corporation (MC) and Mitsubishi UFJ Lease & Finance Company Limited (MUL) have agreed to make a 45 percent 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.
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, Vural Ak, founder of Intercity, takes 51 percent; MC holds 25 percent; MUL gets 20 percent; and International Finance Corporation (IFC) keeps 4 percent.
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.
The 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.