Race on to bring in more Chinese EVs

Philippine city streets are already seeing more electric vehicles (EV) from China, but it looks like even more will be coming in.

This, as local automotive companies are racing to bring in prized brands such as Xiaomi and Nio to join Chinese brands like BYD, Jetour, BAIC, GWM, Omoda/Jaecoo, Dong Feng, Foton and Geely that are already in the Philippines through distributorship agreements.

Biz Buzz sources said that a number of local distributors have already written the brand owners in China to signify their interest in forging agreements and bringing the brands to the Philippines where the market has become more receptive to electric vehicles.

Indeed, the local automotive market has reported a sales decline in the first few months of the year as the Middle East crisis has depressed demand for new vehicles.

However, electric vehicles have emerged as the rare bright spot, with sales skyrocketing as those with deep pockets address the risk of running out of fuel by purchasing electric vehicles.

Sources said that the target Chinese companies are currently poring over the proposals submitted by local companies.

It is thus but a matter of time before they decide to whom they will give their coveted ‘yes’. —Tina Arceo-Dumlao

Security Bank’s wholesale shakeup

A leadership change at Security Bank’s wholesale banking business is quietly fueling speculation on who could emerge as the lender’s next key executive.

The bank led by tycoon Frederick Dy said John Cary Ong had stepped down as head of its wholesale banking segment, a division that serves corporate, commercial and institutional clients and is considered one of Security Bank’s major growth engines.

While the bank did not identify a successor, it unveiled an interim leadership structure that has caught the attention of industry observers.

For now, president and CEO Victor Lee will directly oversee the segment, working alongside Hirofumi Umeno, head of the Alliance Segment; Yvonne MAarcelo, head of Corporate Banking; Jorge Lindley Ong, head of Commercial Banking; and Security Bank Capital president and CEO Virgilio Chua.

Security Bank stressed that the transition would be seamless and reiterated that wholesale banking remains a strategic growth pillar.

The lender also highlighted the backing of Japanese banking giant MUFG, its 20-percent shareholder and alliance partner, as it pursues further growth opportunities.

Until then, observers will likely keep a close eye on the executives now helping steer one of Security Bank’s most important businesses.

Sometimes, the names included in a transition plan reveal as much as the announcement itself. —Emmanuel John B. Abris

Jollibee keeps IPO market guessing

Where will Jollibee Foods Corp. eventually plant the flag for what could be one of its biggest corporate moves yet?

That remains the billion-peso question after reports surfaced that the homegrown fast-food giant was weighing a shift in the planned listing of its international business from the United States to Hong Kong.

But don’t expect a final answer just yet.

In a disclosure on Monday, Jollibee stopped short of confirming the report, saying only that it continues to evaluate “various strategic options” for the proposed transaction.

“In this context, the company continues to evaluate various strategic options for the intended listing of its international business with a view to determining what would best serve the best interests of the company and its shareholders and these evaluations remain ongoing,” Jollibee said.

The careful wording suggests management is keeping all doors open as global capital markets remain anything but predictable. A Hong Kong debut could provide closer proximity to Asian investors, while a US listing may offer deeper liquidity and greater visibility among global funds.

What is clear is that the overseas business has become too large to ignore. Years of acquisitions and expansion across North America, Europe, the Middle East and Asia have transformed the international segment into a growth engine in its own right.

Whether the eventual venue is in the US, Hong Kong or somewhere else entirely, the company’s latest disclosure shows that management is still shopping for the best stage before serving up the deal. —Emmanuel John B. Abris