The battle is over: Victorious F&N triumphs over shrewd MEHL
Myanmar Brewery will be sold for $775m.
The long and bitter battle over Fraser and Neave's lucrative 55% stake in Myanmar Brewery (MBL) finally ended today, with F&N emerging victorious over its joint venture partner Myanma Economic Holdings (MEHL).
The two parties said that the sale will be completed at a price of $775m (US$560m), two weeks after an independent valuer said that F&N's stake is worth 500 billion kyat.
MEHL had agreed to the valuation but insisted the sale be completed at the current exchange rate, which will translate to a fair value of just $550m (US$401m).
F&N balked at the claim and said that the deal should be closed using the 2013 exchange rate, which translates to $775m (US$560m).
MEHL then took the case to the Singapore High Court, but the case was dismissed almost immediately after it was filed. MEHL eventually withdrew its claim.
"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," MEHL said in a release.