A Burmese conglomerate has appealed to the Singapore High Court to help settle a dispute over a deal dating back to 2013 over the corporation’s holding value.
Government-backed Myanma Economic Holdings Ltd (MEHL) has asked the court to order food and drink company Fraser and Neave Ltd (F&N) to transfer its 55 percent stake in Burma’s biggest brewery to the firm by 20 August.
MEHL plans to pay F&N 500 billion kyat (US$407 million) for the stake in Myanmar Brewery, a price set by an independent valuer.
But F&N, backed by Thai tycoon Charoen Sirivadhanabhakdi, says the sale should be completed in U.S. dollars based on a 2013 exchange rate, estimating the fair value of its stake to be $560 million.
MEHL first started arbitration over the stake in 2013, winning the case last year. It had originally offered F&N $246 million.
“By choosing to refuse to complete the sale at $560 million, MEHL has not abided by, evinced an intention not to abide by, and has breached, its obligations,” F&N said in a statement.