SINGAPORE: The Myanma Economic Holdings (MEHL) has accepted the US$560 million (S$776 million) valuation of Fraser & Neave’s (F&N) 55 per cent stake in Myanmar Brewery, the Singapore-listed company said on Wednesday (Aug 5).
In a filing on the Singapore Exchange, F&N said its Myanmar partner in the brewery confirmed the sale at that price, and an originating summons filed with the Singapore High Court by MEHL will be withdrawn. Another interim injunction filed by MEHL was dismissed with costs by the court, the company said on Aug 3.
“The company will be making a separate announcement with further details in due course. In the meantime, shareholders of the company are advised to exercise caution when dealing with shares of the company,” said F&N.
On Thursday (Aug 6), MEHL said in its press release “both parties have agreed to the completion in accordance with the ruling by an arbitral tribunal at the end of last year, and to bring to a closure all disputes relating to the payment for the stake”.
The deal for the brewery, which produces Myanmar Beer, will be completed before or on Aug 20, 2015, upon payment, it added.
Last October, arbitrators affirmed MEHL’s rights to buy over F&N’s stake in Myanmar Brewery at fair value, which would be decided by a valuer appointed by both parties. F&N noted than that the arbitrators had agreed that the US$246 million offered by its Myanmar partner was “grossly inadequate”.