F&N says it will "vigorously resist" the claim

F&N says it will "vigorously resist" the claim

Fraser & Neave has revealed that its joint-venture partner in Myanmar Brewery, Myanmar Economic Holdings (MEH), plans to start arbitration proceedings over its stake in the brewery.

The Singapore conglomerate currently owns 55% of Myanmar Brewery, while MEH, run by the Myanmar military, has 45% of the company. In a filing today (29 August), F&N said MEH has given notice that F&N must sell its stake either to MEH or a nominee company, citing the joint-venture agreement. 

But F&N said: “There is no basis for MEH to give that notice. The company (F&N) has engaged lawyers and intends to vigorously resist the claim.”

It added that it is “currently assessing the financial impact of the potential dispute”. Myanmar Brewery's brands include Myanmar Beer, Myanmar Double Strong and Andaman Gold.

Last year, F&N sold its stake in Asia Pacific Breweries (APB) to allow its JV partner Heineken to take full control of the Tiger brewer.

Earlier this year, Chang brewer ThaiBev, which fought a bidding war with Heineken for APB, acquired a controlling stake in F&N.