Kirin Holdings Singapore (KHSPL) is planning to make a majority investment in a new joint venture for the purchase of Mandalay Brewery (MDL).

KHSPL will transfer 4% of all outstanding shares of its holdings in Myanmar Brewery (MBL) at a price of $40m to Myanmar Economic Holdings (MEHL), which is the current parent firm of MDL.

KHSPL purchased 55% of all outstanding shares in MBL in august 2015. MBL is currently operated by KHSPL, with MEHL as a joint partner.

"MDL and KHSPL intend to establish a new joint venture company, with an investment of $4m."

The investment in MDL and the purchase of the beer manufacturing and shipping location is a part of Kirin's strategy to support its beer market in the country.

After the acquisition is complete and approval is received from Myanmar Investment Comission, MDL and KHSPL intend to establish a new joint venture company, with an investment of $4m.

The Kirin Group also owns the equity method affiliate San Miguel Brewery in the Philippines, in addition to MBL, which is expected to further strengthen its presence in the beer market of the region.