International News 2010: Internet accounts for 7.2% of economy

Image via Wikipedia

LONDON (AFP) – The Internet contributed 100 billion pounds to the economy last year, about 7.2 percent of gross domestic product (GDP), a report showed Thursday.

The sector is bigger than the construction, transport or utilities industries in Britain, according to the study by the Boston Consulting Group (BCG), which was commissioned by the British arm of Internet giant Google.

The research also predicted that by 2015, the British 'Internet economy' is likely to grow to 10 percent of GDP, eclipsing the financial sector.

"The Internet is pervasive in the UK economy today, more so than in most advanced countries," said Paul Zwillenberg, a partner with BCG in London.

"Whether they are driving international expansion, improving their interactions with customers or the efficiency of their supply chains, UK companies are increasingly embracing the Internet's potential."

Much of the growth is driven by consumption, the majority of it online spending but also what consumers spend on getting access to the Internet, while the rest comes from government spending, private investment and exports.

http://www.mb.com.ph/node/284771/internet-account

Related articles

• U.K. Internet Accounts For 7.2% Of Economy (webpronews.com)
• UK net economy 'worth billions' (bbc.co.uk)
• UK internet economy worth over £100bn (v3.co.uk)
• Web boom worth £100bn to UK (thesun.co.uk)
• Internet brings in £100bn to economy, says report (newstatesman.com)

Stock News 2010: JFC Completes Acquisition of China Firm

Image via Wikipedia

MANILA, Philippines – Jollibee Foods Corporation (JFC), through subsidiary Jollibee Worldwide Pte. Ltd, has signed a RMB 30 million share purchase agreement with Guangxi Zong Kai Food Beverage Investment Company Ltd for the acquisition of 55 percent of Guangxi San Ping Wang Food and Beverage Management Company.

In a disclosure to the Philippine Stock Exchange, JFC said the target firm operates the San Pin Wang beef noodle business. It has 34 stores located mostly in Nanning City in Guang Xi Province in South China.

The agreement is in line with the framework agreement which was signed last April which provided for the eventual joint ownership of San Pin Wang.

Jollibee will pay RMB 30 million for the 55 percent stake while GZK will retain 45 percent. As joint venture partners by the first quarter of 2011, Jollibee and GZK will invest RMB 20 million with for the expansion of San Pin Wang.

As part of its overseas expansion, Jollibee Worldwide recently signed a joint venture agreement with Hua Xia Harvest Holdings Pte. Ltd. of Singapore to put up a P340.34 million commissary in China.

JFC said they have formed Jollibee Foods Processing Pte. Ltd., a Singaporean Company, that is 70 percent-owned by JWPL while Hua Xia Harvest has a 30 percent share.

The new firm will undertake food manufacturing operations to supply products to food service businesses’primarily the Jollibee Group of Companies.

http://www.mb.com.ph/node/284566/jfc-complete

Related articles

• RP fastfood giant to acquire China food chain (business.inquirer.net)
• 'Mang Inasal' CEO confirms P3B sale to Jollibee (business.inquirer.net)
• Jollibee selling Delifrance (business.inquirer.net)

Stock News 2010: Cebu Air Jumps 6.8% on Listing Debut, Raises Total of $611 Million from IPO

Image via Wikipedia

MANILA, Philippines – Budget airline Cebu Air Inc. jumped as much as 6.8 percent on its debut Tuesday, as the country's largest public offering rode on the back of a broader market that hit a fresh record high.

The airline, a unit of conglomerate JG Summit Holdings Corp and the second biggest Asian budget carrier by market value, raised $611 million in its IPO including a greenshoe option, making it a record amount in dollar terms for a Philippine listing.

Cebu Air's debut takes place amid a boom in IPOs in Asia as well as strong foreign demand for high-yielding emerging markets such as the Philippines.

Upbeat sentiment following presidential elections in May have helped lift the index about 40 percent this year and it is the second best performer in Southeast Asia after Indonesia.

This backdrop bodes well for upcoming listings in the Philippines, analysts said. Philippine miner Nickel Asia plans to raise $162 million in an IPO next month.

''Having launched successfully, the ones apprehensive on the sidelines are now emboldened to come in,'' said Alejandro Yu, president of R.S. Lim and Company, a local stock brokerage.

Cebu Air's shares opened at 132 pesos after a ceremony that included flight attendants dancing the flight safety routine to a Lady Gaga pop song on the stock exchange trading floor, peppered with tube balloons carrying the airline's yellow orange colours. The safety routine dance was a big hit on YouTube earlier this month.

The stock rose as high as 133.5 pesos, before closing at 133 pesos. The airline had sold about 215 million shares at its IPO at 125 pesos each, Cebu Air's parent said late on Monday.

At Tuesday's close, Cebu Pacific was valued at nearly 97 billion pesos or $2.2 billion, larger than rival Tiger Airways at about $723 million but smaller than Malaysia's AirAsia, valued at about $2.3 billion.

Cebu Air CEO and President Lance Gokongwei said he expects the company's international business to overtake its domestic operations in four to five years as it seeks to increase its international capacity by 25 percent yearly via new foreign routes and flight frequencies.

http://www.mb.com.ph/node/284378/cebu-air-jump

Related articles

• Cebu Pacific share price rises over 6% in IPO (business.inquirer.net)
• Cebu Air Shares Rise in World's Biggest IPO of Low-Fare Carrier (businessweek.com)
• Cebu Air Gains in Nation's Biggest IPO in Five Years (businessweek.com)
• You: Cebu Pacific eyes $620m from IPO (menafn.com)
• Cebu Pacific Gains Altitude on First Day (online.wsj.com)

Stock News 2010: Bourse approves listing of IPVG unit

Image by The Planet via Flickr

THE PHILIPPINE Stock Exchange (PSE) on Wednesday approved the initial public offering (IPO) of IP Converge Data Center, Inc., the local bourse’s top executive said late last week.

The fourth public listing approved by the stock exchange for the year will allow the information and telecommunications arm of listed IPVG Corp. to generate P320 million to P365.5 million in fresh capital.

It will also be the second IPVG subsidiary to go public this year. “The approval was on the same board meeting,” PSE Chairman Hans B. Sicat told reporters, referring to the Oct. 20 PSE board meeting. In the same meeting, the PSE allowed Zamora-led Nickel Asia Corp. to conduct its P8.05-billion IPO.

With the recent development, Mr. Sicat said the local bourse was expecting a total of three IPOs for the year.

In mid-October, the Securities and Exchange Commission (SEC) cleared IP Converge’s plan to sell 45.57 million common shares at P7.04 to P8.80 per share.

The shares are equivalent to 25% of the company. Public listing is set for Dec. 8, with IP Converge tapping Unicapital, Inc. as underwriter and issue manager.

http://www.bworldonline.com/main/content.php?id=20007

Stock News 2010: Local importer of GM vehicles plans to sell Buicks, Cadillacs

Image via Wikipedia

THE LOCAL distributor of General Motor Co.’s (GM) Chevrolet cars will be adding the American company’s Buick and Cadillac brands to its lineup, signalling that the strategy to outsource Philippine sales will be maintained despite the eventual recovery of the bailed-out car maker.

Filipino-owned The Covenant Car Company, Inc. (TCCCI) said on Friday a rollout of Buick and Cadillac models was the next step after it was appointed the official Chevrolet importer late last year.

GM’s Southeast Asia division, for its part, confirmed that the car maker will maintain the recent restructuring of sales and other operations despite brewing plans for a possible stock listing to reduce the US Treasury’s 61% stake in the firm.

“We are looking at bringing in the Cadillac and the Buick [brands] which are not yet sold in the Philippines,” Mr. Arcilla said.

http://www.bworldonline.com/main/content.php?id=20010

Related articles

• Buick, GMC may turn to loaner vehicles to help sell cars (autoblog.com)
• GM Unveils Plans for New Compact Buick Sedan (dailyfinance.com)
• Chevrolet-Buick-GMC-Cadillac Sales Up 25 Percent in July (prnewswire.com)

Stock News 2010: Jollibee buying 70% of Mang Inasal

Image via Wikipedia

FASTFOOD GIANT Jollibee Foods Corp. is buying 70% of the Mang Inasal chain of chicken restaurants for P3 billion.

In a disclosure, Jollibee Foods said it would pay P200 million in downpayment to the owner of Mang Inasal Philippines, Inc., Injap Investments, Inc. led by Edgar Sia III.

The homegrown fastfood chain said Mang Inasal would add the equivalent of 5% of Jollibee Foods' worldwide system sales and 7% of profits. The acquisition will also increase Jollibee Food's worldwide network of stores by 16%.

http://www.bworldonline.com/main/content.php?id=19654

Related articles

• 'Mang Inasal' CEO confirms P3B sale to Jollibee (business.inquirer.net)

International News 2010: Howard Buffett Says Don't Expect Third-Generation at Berkshire

Image via Wikipedia

Howard Buffett, the Berkshire Hathaway Inc. director and potential successor to his father Warren Buffett as chairman, said he doesn’t expect a third generation of the family to lead the firm.

“We all go out and do the things that we want to do and the things we think we can do best,” Howard Buffett, 55, said yesterday in an interview at a World Food Prize conference in Des Moines, Iowa. “It’s very unusual to have a second or third generation that really are the best to fit into something that you’ve created much earlier.”

Warren Buffett, after building Berkshire through four decades as chairman and chief executive officer, has made succession plans for after his retirement or death. The company board will split Buffett’s duties among more than one manager. Warren Buffett said in 2006 that his son Howard, a farmer and author, would safeguard Berkshire as non-executive chairman.

“My dad has said to me what he would expect, and I think I can do it,” Howard Buffett said. “My job is to make sure Berkshire doesn’t change. And that’s about all he’s said to me.”

Howard is the second of Warren Buffett’s three children and the only one on Berkshire’s board. Asked if the family’s next generation had a place at Berkshire, Howard Buffett said, “probably not.” His son, Howard W. Buffett, has an agriculture-related job for the U.S. Department of Defense.

http://www.bloomberg.com/news/2010-10-14/step-out-of-that-ferrari-and-ask-am-i-a-corvette-guy-jason-h-harper.html

Related articles

• Plenty of Ways to Invest Like Warren Buffett (seekingalpha.com)
• Warren Buffett Keeps Selling Moody's Stock (blogs.wsj.com)
• Warren Buffett: A Bull in Cow Country (dealbook.blogs.nytimes.com)
• Buffett Issues Bearish Warning on Euro (dealbook.blogs.nytimes.com)