HK-listed Razer co-founder Lim Kaling to exit cigarette venture with Myanmar military

Singapore businessman Lim Kaling said on Tuesday he would exit his investment exposure to Virginia Tobacco Company in Myanmar because of "grave concern" over the situation in the country, Reuters reports. 

Lim, the co-founder of Hong Kong listed gaming group Razer,  said in a statement he was a passive minority shareholder in the tobacco firm through RMH Singapore Pte.

Back in 1993, Lim started Distinction Investments to address an economic opportunity in Myanmar as the country was opening up to the rest of the world.

"Through this venture, we had hoped to help the country spur economic growth, create jobs and raise standards of living," he said, the Straits Times said.

Distinction Investments has three shareholders: Myanmar citizen George Yin Soon, Castlebay Investments, and Bright Seasons. Its directors are Soon, who is also known as Kyaw Kyaw Htun;  Lim and Ong Beng Huat, brother of Singapore tycoon and hotelier, Ong Beng Seng.

Lim - who is the chairman of his 100-year old family business Lim Teck Lee Pte  - said he has always been a passive minority shareholder with no direct involvement in the operations of VTCL, which produces the popular Red Ruby and Premium Gold cigarette brands.

Myanmar Economic Holdings Limited (MEHL), a military-linked conglomerate with a significant portfolio across many Myanmar's industries from banking, tourism, real estate, transportation to gems and metals, holds the remaining 51 per cent stake in VTCL.

Myanmar's commander-in-chief Senior General Min Aung Hlaing - who led the military coup which seized control of the government from elected leader Aung San Suu Kyi last week - oversees MEHL. According to an Amnesty International report in Sept last year, the military chief owned 5,000 shares in MEHL in 2011.