Myanmar

Myanmar: Carlsberg has formed a JV in Myanmar with privately owned Myanmar Golden Star Breweries to brew and market Carlsberg beers in the country. Carlsberg’s entry into Myanmar offers positive read through to two SGX-listed companies in particular. i) Thai Bev / FNN: Carlsberg is clearly excited about the beer growth potential in Myanmar, being the first big Western brand name to venture into the market. This bodes well for FNN, which already has a JV in Myanmar, where it brews local beers such as Myanmar beer. Thai Bev in turn, owns a ~29% stake in FNN, and has much potential for synergies with FNN’s F&B business unit, now that TCC Assets’ majority acquisition of FNN is effectively a done deal. ii) mDR: previously announced a 51/49 JV to tap into the potential growth of the telco industry in Myanmar, and provide after sales services of telco devices to consumers. More importantly, it will also be involved in the lucrative mobile devices and accessories distribution and retail businesses via exclusive retail franchisee procurement services to Golden Myanmar Sea, which is in turn owned by Myanmar Golden Star (MGS) group. Carlsberg’s choice of partner in MGS is a further testament to the latter’s reputation and network. MGS is controlled by businessman U Thein Tun, who is known in Myanmar as “Pepsi Thein Tun” for bringing the multinational bottler into the country. His business empire now spans a private commercial bank, and some 15 businesses in diverse segments ranging from food, alcoholic and non-alcoholic beverages, financial and medical services, farming, agricultural and natural resources, and consumer electronics trading and distribution. His company is now tipped to operate one of two new airlines to be launched next year.