High Court dismisses interim injunction against F&N in Myanmar brewery dispute

FRASER & Neave said on Monday that the Singapore High Court had, on July 31, dismissed with costs an interim injunction requiring F&N to sell its 55 per cent stake in a Myanmar brewery to its joint venture partner, Myanma Economic Holdings (MEHL), for 500 billion kyat (S$540 million).

MEHL asked the High Court last Wednesday to order F&N to transfer its stake in Myanmar's biggest brewery to the Myanmar firm by Aug 20. MEHL also filed an application for an interim injunction requiring F&N to sell its stake for 500 billion kyat, a price set by an independent valuer. That amount is equal to US$407 million at current exchange rates.

But F&N says the sale should be completed in US dollars based on a 2013 exchange rate, estimating the fair value of its stake to be US$560 million.

According to F&N, the amount US$560 million had been determined by the jointly appointed independent valuer, and the amount is stated in the valuation report. The independent valuer had converted the Kyat500 billion by applying the 2013 exchange rate, to arrive at US$560 million.