SINGAPORE — Singapore property and drinks conglomerate Fraser and
Neave said on Thursday its joint venture partner, which is run by
Burma’s military, plans to start arbitration proceedings over the
company’s stake in Myanmar Brewery.
The brewery represents only a small part of F&N’s business but
losing its stake would mean being shut out of one of Asia’s fastest
growing beer markets. In a May earnings briefing, F&N said its Burma
beer business had recorded double-digit growth from a year earlier.
F&N, which is controlled by Thai billionaire Charoen
Sirivadhanabhakdi, currently holds 55 percent of Myanmar Brewery while
Myanmar Economic Holdings Ltd (MEHL) holds the remaining 45 percent.
In a statement, F&N said the Burmese company was trying to obtain
its share in the brewery by citing a joint venture agreement. MEHL
officials could not be reached for comment.
“The company maintains that there is no basis for MEHL to give that
notice. The company has engaged lawyers and intends to vigorously resist
the claim,” the F&N statement said.
Myanmar Brewery, which manufactures beer brands such as Myanmar Beer,
Myanmar Double Strong and Andaman Gold, is estimated to have an 83
percent share of Burma’s growing beer market by volume, F&N said in a
recent presentation.
“Myanmar Brewery is important to F&N because of the emerging
market exposure, the growth story for Myanmar is pretty strong and they
are the dominant brewer,” said Jit Soon Lim, head of Southeast Asia
equity research at Nomura.
F&N said on Tuesday it would list shares in its property arm,
Frasers Centrepoint, on the Singapore Exchange this year. F&N will
keep the food and beverage as well as the publishing and printing
businesses.
source: The Irrawaddy
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