Myanma Economic Holdings (MEHL), which is controlled by Myanmar military, has won an arbitration case against Singapore-based beverage producer Fraser and Neave for the acquisition of latter's stake in Myanmar Brewery.
MEHL was seeking to acquire Fraser and Neave's 55% stake in Myanmar Brewery, in a deal worth around $256m.
However, the arbitral tribunal said that MEHL's proposed purchase price is not a fair value for Fraser and Neave's stake in Myanmar Brewery.
The tribunal ruled MEHL must revise the acquisition price that should be determined by an independent valuer appointed by both parties.
Fraser Neave said it rejected MEHL's buyout as it considered the price to be grossly inadequate, citing the brewery's dominance in the Myanmar's beer market.
Meanwhile, Fraser Neave, along with its shareholder Thai Beverage, will explore ways to continue its operations in Myanmar.
Image: Myanmar Brewery engages in producing beers in Myanmar. Photo: courtesy of Idea go / FreeDigitalPhotos.net.
