News – PH – Biggest Wealth Fund Watchlist Kirin on Myanmar Link

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The Norwegian central bank said on Wednesday May 3 March, she put the Japanese Kirin Holdings on a watchlist to obtain a possible exclusion from their $ 1 trillion sovereign wealth fund on the beverage giant’s business relationships with the military in Myanmar

Kirin said on Jan. February that it will end its partnership with Myanmar Economic Holdings Public Company Limited (MEHPCL), a company run by Myanmar’s army, after a military coup overturned the democratically elected government
As part of its decision on whether the company should continue to hold a stake in Kirin, the Norwegian fund will oversee the implementation of the company’s plan to end the relationship, the Norwegian central bank said in a statement

Kirin’s decision effectively scraps the Myanmar Brewery joint venture, in which the Japanese company’s controlling stake was valued at up to $ 1.7 billion, although Kirin also said she plans to continue selling beer in Myanmar

Norges Bank Investment Management (NBIM), which manages the world’s largest sovereign wealth fund, held a 29% stake in Kirin Holdings at the end of 2020 with a value of USD 277 million

“We remain focused on urgently implementing the termination of our joint venture partnership with MEHPCL,” said Kirin in a statement emailed to Reuters

“As part of this, we hope to find a way forward that will allow Kirin to continue to make a positive contribution to Myanmar. We value the opinions and feedback of all of our stakeholders and are open to constructive engagement on this matter,” he added

The Norwegian sovereign wealth fund, officially known as Government Pension Fund Global and established in 1996 to save petroleum revenues for future generations, owns approximately 15% of all global listed stocks

With investments in around 9In 100 companies around the world, the company has driven a range of environmental, social and corporate governance (ESG) issues, and its decisions are often followed by other investors

The bank separately announced that it would allow the wealth fund to reinvest in Poland’s Atal, which has been banned since 2017 due to the risk of human rights violations from the use of North Korean workers on Polish construction sites

“As a result of a resolution in the United Nations Security Council, all North Korean workers have now been sent from Poland. Therefore, there is no longer any reason to exclude the company,” said Norges Bank

A third company, the German company Thyssenkrupp, will be the subject of an “active ownership” process as the fund management tries to investigate the company’s anti-corruption work, said Norges Bank

“Norges Bank has had a longstanding dialogue with the company. We therefore have a good basis for active participation in the issues to which this matter relates,” said the central bank

The fund held a 13% stake in the German company at the end of 2020, valued at 147 USD1 million

“Thyssenkrupp is in regular and constructive dialogue with its investors. This also includes the Norwegian asset fund. In these discussions, governance problems are repeatedly addressed, for example the implementation of the zero tolerance policy in compliance issues,” said the company. Rapplercom

Sovereign Wealth Fund, Kirin Holdings Company, National Pension Fund of Norway, Investment Fund, Myanmar (Burma), Norges Bank

News – PH – Largest wealth fund puts Kirin on watchlist on Myanmar Link

Source: https://www.rappler.com/business/norway-sovereign-wealth-fund-puts-kirin-watch-list-myanmar-link