F&N says Myanmar Brewery stake independently valued at more than twice offer price

SINGAPORE - Fraser & Neave (F&N) says its 55 per cent stake in Myanmar Brewery has been estimated to be worth US$560 million (about S$763 million) by an independent valuer - more than double the original offer of US$246 million (S$335 million) from Myanma Economic Holdings, its joint-venture partner in the brewery.
Myanma Economic had earlier won an arbitration ruling that will require F&N to sell its 55 per cent stake to its partner, but the arbitration tribunal set aside the original valuation of US$246 million and ordered that the sale take place at a fair value to be determined by an independent valuer.
Huang Hong Peng, chief executive officer of F&N's beer division, said the independent valuation represented a significant premium to Myanma Economic's original offer and "validates our assessment of the strategic attractiveness" of Myanmar Brewery "due to its leading position in the Myanmar beer market, the strength of its iconic Myanmar Beer brand and distribution network, and its ability to capitalise on future growth potential."

A sale of its Myanmar Brewery stake means that F&N could lose a significant growth driver and its only alcohol product since selling its stake in Tiger beer maker Asia Pacific Breweries in 2012.
F&N said on Thursday that it has "earmarked funds for further investments to achieve full business potential in its core markets, and for investment opportunities in other new markets within the Asean region.