Singapore drinks and property conglomerate Fraser and Neave says an independent assessment has valued its 55 percent share in Myanmar Brewery at US$560 million (about K653.5 billion), the Straits Times reported on July 23.
The estimate by the independent valuer was more than double the $246 million F&N was originally offered by its joint venture partner in the brewery, the military-owned Union of Myanmar Economic Holdings Ltd, the report said.
The valuation follows a ruling by a Singapore arbitration panel in October 2014 requiring F&N to sell its share to UMEHL, which had accused the Singapore conglomerate of defaulting on the joint venture agreement.
The arbitration panel set aside the original valuation of $246 million and ordered that the sale take place at a fair price to be determined by an independent valuer.
The Straits Times quoted Huang Hong Peng, the chief executive of F&N’s beer division, as saying the independent valuation represented a significant premium to UMEHL’s original offer and “validates our assessment of the strategic attractiveness” of Myanmar Brewery, because of its strong market position.
UMEHL said in statement last week that it disagreed with F&N that the sale should take place in US dollars at the 2013 exchange rate, the Myanmar Times reported.
F&N was taken over in 2013 by Thai beverages and property magnate, Charoen Sirivadhanabhakdi.