Northwest Arkansas Democrat-Gazette
Kirin sells stake in Burma brewer
Rights advocates slam deal
BANGKOK — Japanese beverage giant Kirin Holdings plans to sell its shares in Burma Brewery to the joint venture, giving its local partner Myanma Economic Holdings Plc. 100% control of the company.
Kirin said the share buyback agreement took into account its employees and other stakeholders and would be the fastest way to exit the venture. But human rights advocates criticized the move.
Kirin announced shortly after a military takeover in February 2021 that it intended to pull out of the brewery venture, but reported various problems in reaching an agreement with the local partner on how to withdraw. The latest plan was the best of three options that also included liquidating the brewery or selling its stake to another company, it said.
Burma is often called Burma, a name that ruling military authorities adopted in 1989.
The transfer of the 51% stake held by Kirin Holdings Singapore Pte, a subsidiary of Kirin Holdings, will give Myanma Economic Holdings full control of Burma Brewery. Kirin said it was withdrawing from another venture, Mandalay Brewery, under a similar arrangement.
The U. S. Treasury designated Myanma Economic Holdings Public Co. Ltd. and Burma Economic Corporation Limited for sanctions in March 2021, noting that the military controls significant segments of the country’s economy through those holding firms.
The companies dominate key industries including trading, natural resources, alcohol, cigarettes and consumer goods, providing vital revenue to the military, the U.S. Treasury said.
Human rights advocates have been urging foreign investors to leave ventures in Burma to avoid complicity in paying taxes or revenue to entities controlled by the military-led leadership, which faces widespread public opposition to its takeover.
The Assistance Association for Political Prisoners, a private organization that tracks government killings and arrests, says more than 2,000 civilians have been killed by Burma’s security forces since the army takeover. The military also is battling anti-government guerrillas in the countryside.
At the same time, sales of stakes in such ventures to state enterprises like MEHL have drawn criticism.
The decision to hand control of Burma Brewery and Mandalay Brewery to Myanma Economic Holdings Ltd. is a “windfall for the Burma military and will ensure a continued stream of revenue to finance atrocity crimes,” Yadanar Maung of the group Justice for Burma said in a statement.
“The responsible move is to deny funds to the Burma military and remedy negative impacts to workers through compensation,” the statement said.
The deal requires approval by the Burma government. Estimates of the loss and income from the share transfer were still subject to change, Kirin said.