Japan's Kirin To Sell Stake In Myanmar Bureaucracy To Sanctioned Partner

Kirin Holdings announced Thursday that it will sell its shareholding in Myanmar Brewery to its joint venture partner Myanma Economic Holdings Plc., Elaine Kurtenbach reported for the Associated Press (AP).

Photo Insert: Kirin stated its intention to exit the brewery partnership shortly after a military takeover in February 2021.

Kirin stated that the share buyback arrangement with MEHL, a corporation sanctioned by the US and other Western countries, took into account its employees and other stakeholders and would be the quickest method to leave the venture. However, human rights activists slammed the measure.

Kirin stated its intention to exit the brewery partnership shortly after a military takeover in February 2021, but claimed different difficulties in obtaining an agreement with the local partner on how to do so.

According to the firm, the latest strategy was the best of three possibilities, which included dissolving the brewery or selling its stake to another company.

The transfer of Kirin Holdings Singapore Pte, a subsidiary of Kirin Holdings, will give Myanma Economic Holdings complete control of Myanmar Brewery. Kirin also announced its withdrawal from Mandalay Brewery under a similar agreement.

Human rights activists have urged international investors to exit Myanmar projects in order to prevent cooperation in providing taxes or revenue to entities controlled by the military-led regime, which is facing widespread public opposition to its takeover.

According to the Assistance Association for Political Prisoners, a private organization that monitors government deaths and arrests, nearly 2,000 civilians have been slain by Myanmar's security forces since the army took over. In the countryside, the military is also fighting anti-government rebels.

At the same time, the sale of stakes in such firms to state-owned enterprises such as MEHL has been criticized.

The decision to give Myanma Economic Holdings Ltd. control of Myanmar Brewery and Mandalay Brewery is a “windfall for the Myanmar military and will ensure a continued stream of revenue to finance atrocity crimes,” said Yadanar Maung of the group Justice for Myanmar in a statement.

“The responsible move is to deny funds to the Myanmar military and remedy negative impacts to workers through compensation,” the statement stated.

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