In a letter to the Securities and Exchange Commission (SEC), SPI said it intends to increase its foreign equity and apply under the Foreign Investments Act (FIA).
However, with the increase of its foreign equity to more than 40 percent of its outstanding capital stock, it will no longer be allowed to own land due to the existing Constitutional prohibition.
The Japanese group of investors said it is prepared to remit its investment, but it cannot do so until the properties of SPI are sold.
Due to the urgency of increasing the working capital of SPI and to assure its Japanese investors of the approval of the application, SPI requested for the deferment of the sale of its land after the approval of its FIA application.
To encourage foreign investments, the SEC has approved SPI’s request on condition that its land shall be disposed of within six months after the issuance of its certificate of FIA registration.
Sanyo’s origins date back to 1971 with Sanyo Electric Co. Ltd. and Sanyo Electric Trading Co. as its foreign partners.
The original manufacturing plant was located in Quezon City, Metro Manila with the gas stove as its first product.
During those days, SPI had only 23 employees manning the production lines. Within a very short time, Sanyo gas stoves had been a hit among the Filipino consumers because of their excellent quality and durability. Soon, Sanyo started manufacturing television sets and electric fans. – Zinnia dela Peña