Singapore’s Fraser & Neave has agreed to sell its controlling stake in Myanmar’s biggest brewery to, Myanmar Economic Holdings Ltd (MEHL), a Myanmar government-linked group, for $560m, ending a lengthy dispute that had raised fears over economic interference the Financial Times reported on 6 August.
The brewery, known for its Myanmar Beer and Andaman Gold, is Myanmar’s largest taxpayer.
Last year MEHL won an arbitration case against F&N, which was ordered to sell its 55 per cent of Myanmar Brewery to the conglomerate controlled by members of Myanmar’s armed forces. The actual sale was delayed, however, by disagreements over the exchange rate to be used.
Last month an independent assessment valued F&N’s stake at 500bn Myanmar kyat, or $560m at the April 2013 exchange rate.
Thursday’s announcement was a victory for the Singaporean company as MEHL had sought to pay in kyat, which would put the price tag at about $400m at the current exchange rate.