Kirin Holdings, after much wrambling, has finally agreed to sell its joint-venture stake in Myanmar to its military-backed partner. The move, announced on 30 June, came 4 months after Kirin said it will officially withdraw from the venture.
The decision signalled the end of a row between the 2 companies triggered by a military coup in the country last year.
Kirin entered into the partnership 7 years ago by acquiring majority control of Myanmar Brewery Ltd (MBL). It bought an interest in a second brewer, Mandalay Brewery two years later. Its military-backed partner, Myanmar Economic Holdings Public Company Limited (MEHPCL) held the remaining shares in both beer makers.
The partnership was brought into question 3 years ago when MEHPCL was linked to the country’s military in a report by the UN.
In a filing, Kirin said its Singapore subsidiary will sell its shares in MBL back to the brewery for US$165.8 million. In 2021, MBL generated revenue of US$152.6 million and operating profit of US$52 million. This is lower than the previous year of US$221 million and 95.8 million respectively. Similar agreement is also made for Mandalay Brewery.
Campaign group Justice for Myanmar has however criticised the way Kirin exited the ventures. It considers the sale as a windfall for the Myanmar military and will supply them with continued stream of revenue over the years.
