Kirin today filed for arbitration with the SIAC, hoping involvement by a third-party body would help end the impasse.
Kirin is also counting that having its argument heard on the international stage will help its case and add pressure on the military-backed venture partner.
At issue is the fate of Myanmar Brewery, operated by Kirin and Myanma Economic Holdings (MEHL).
The Japanese brewer decided to unwind the partnership after Myanmar’s military took control of the country, but it still hopes to continue operating the business after MEHL gives up its stake.
But it is unclear whether MEHL will abide by whatever ruling the SIAC will issue.
Kirin owns 51% of Myanmar Brewery, with MEHL holding the rest.
In November, MEHL unilaterally filed a request with the Yangon West District Court to dissolve the joint venture.
Myanmar company law prescribes that the court may wind up a company if “the court is of the opinion that it is just and equitable”.
Along with the arbitration at the SIAC, Kirin will also ask the Myanmar court to reject MEHL’s liquidation request.
“We will request dismissal of the petition because of doubts about the fairness and appropriateness of the liquidation process,” Kirin said in a statement last month.
Even if the SIAC rules in favour of Kirin, a Myanmar court ruling allowing liquidation could prompt MEHL to move ahead, said Yoshihiro Takatori, managing director at the Japan Association of Arbitrators.
Before deciding on the dissolution of the partnership with the military in February, Kirin stopped paying dividends to MEHL in November 2020 for the military’s alleged involvement in the persecution of the country’s Rohingya Muslim minority.
The Japanese company has faced pressure from human rights organizations to sever ties with the Myanmar military.
Other global companies, including South Korean steelmaker Posco and Norway telecom Telenor, have had trouble with Myanmar authorities or military-affiliated companies.
The outcome of Kirin’s arbitration efforts could affect the strategies of those companies as well.