Singapore High Court has dismissed with costs an interim injunction sought by Myanma Economic Holdings (MEHL) in its ongoing tussle with Fraser & Neave (F&N) for stakes in Myanmar Breweries (MBL).
The two MBL stakeholders have been tussling since 2013 over the fair value of F&N’s 55 per cent stake in Myanmar’s largest beer-maker by volume.
F&N has insisted that any sale of its stake should be completed in United States dollars based on a 2013 exchange rate, estimating the fair value of its stake to be US$560 million (S$768 million).
MEHL, which holds a 45 per cent stake in MBL, wants F&N to sell its stake for 500 billion kyat (S$540 million), a price that was set by an independent valuer.
It filed the injunction in the Singapore High Court last Wednesday to order F&N to transfer its stake to them by Aug 20 for that amount. MEHL’s desired exchange rate would yield about US$394 million, well under what F&N is demanding.
F&N said yesterday the case was dismissed last Friday with costs.
“The company will make further announcements in due course to update shareholders of any material developments,” the firm said in a release posted on the Singapore Exchange.
The two firms have been at loggerheads since F&N was taken over by parties linked to Thai tycoon Charoen Sirivadhanabhakdi.
MEHL said the takeover breached the joint venture agreement, which, in turn, entitled it to buy its partner’s stake.
It initiated legal proceedings and won, but that triggered the dispute over the exchange rate.