Saturday, 11 July 2009

Philippine net FDI up 155% in April

BusinessWorld
http://www.bworldonline.com/BW071109/content.php?id=003

Net foreign direct investments (FDI) rose by 155% in April to $601 million from a year earlier, a result that was also a reversal of March’s $27-million outflow.

The increase from the $236 million recorded in the same month last year was due to Japanese firm Kirin Holdings, Co.’s acquisition of a substantial stake in San Miguel Brewery, Inc., the Bangko Sentral ng Pilipinas (BSP) reported on Friday.

"The rebound in FDI flows given the difficult global economic conditions reflected foreign investors’ confidence in the country’s macroeconomic fundamentals," central bank Governor Amando M. Tetangco, Jr. said in a statement.

The April result pushed the tally for the first four months of 2009 to $648 million, a 29.1% gain compared to the same period last year.

Foreign equity capital placements reached $619 million during the month, with the bulk stemming from the "acquisition by a foreign enterprise of a significant number of shares in a local beverage manufacturing firm," the BSP said.

In April, diversifying food and beverage conglomerate San Miguel Corp., announced that it had sold 778 million shares of its beer unit San Miguel Brewery, Inc., or 5% of the company, to Kirin for P6.87 billion.

The sale followed Kirin’s earlier acquisition a 43% stake in San Miguel Brewery worth P58.93 billion.

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