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Myanmar conglomerate asks Singapore court to enforce F&N brewery stake sale
[SINGAPORE] A Myanmar conglomerate has asked Singapore High Court to order food and drink company Fraser and Neave Ltd (F&N) to transfer its 55 per cent stake in Myanmar's biggest brewery to the Myanmar firm by Aug 20 in a dispute over a deal dating back to 2013 over the holding's value.
Government-backed Myanma Economic Holdings Ltd (MEHL) plans to pay F&N 500 billion Myanmar kyat for the stake in Myanmar Brewery, a price set by an independent valuer. That fee is equal to US$407 million at current exchange rates.
But F&N, backed by Thai tycoon Charoen Sirivadhanabhakdi, 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.
MEHL first started arbitration over the stake in 2013, winning the case last year. It had originally offered F&N US$246 million.
"By choosing to refuse to complete the sale at US$560 million, MEHL has not abided by, evinced an intention not to abide by, and has breached, its obligations," F&N said in a statement.