MEHL takes Fraser and Neave to court, demands final MBL sale by August

But F&N is ready to hold its ground.

The long-drawn battle between Myanma Economic Holdings (MEHL) and Fraser and Neave (F&N) is finally about to come to a head.

MEHL has filed an Originating Summons in the Singapore High Court against F&N, demanding that the sale of F&N's 55% stake in Myanmar Brewery (MBL) be completed by August 20 2015.

The summons was filed on July 29, according to a statement by F&N.

On the same day, MEHL also filed an application for an interim injunction requiring F&N to sell its stake for the sum of 500 billion kyat.

In the application, MEHL demanded that the deal be completed based on the official exchange rate as set by Bloomberg on the day before the sale is closed.

The deal's correct exchange rate is a sore point between the two joint venture partners.

F&N believes that the 2013 US dollar exchange rate must be used, which will translate to a fair value of $763m (US$560m).

However, MEHL's desired exchange rate will be equivalent to roughly $550m (US$401m).

F&N said that MEHL's refusal to complete the deal at US$560m is a breach of its legal obligations.

“The Company has notified MEHL that it has elected to, and shall, remain as a shareholder of MBL.It is also the Company’s position that MEHL does not have a basis for the reliefs it has sought in the proceedings it has filed. The Company intends to defend the proceedings,” F&N said.