The Khemka family in India – founders, managers and owners of most of the base-Russia Sun Brewing – face a difficult decision in 1998. After the massive devaluation of the ruble in August 1998, the share price of SUN Brewing, listed on the Luxembourg Stock Exchange, fell more than 90%. Two months earlier, had planned a share of $ 200 million to $ 400 and offer debt on the Stock Exchange of New York to finance large investments in the face of increasing competition from international companies in the Russian beer market. However, the devaluation of the ruble and the deep financial crisis that followed led to the cancellation of the proposed registration of the NYSE – and a bridge loan of $ 40 million at present to be paid. The family is debating the merits of two main alternatives: To bring a major global beer company as a strategic partner in these difficult times and remain as owners of controls, inject millions of dollars in the company of other parts of the enterprise group family, and the storm until better conditions you can expect from any provider of foreign capital.
by
Belén Villalonga,
Raphael Amit
Source: Harvard Business School
16 pages.
Release: Aug 17, 2006. Prod #: 207022-PDF-ENG
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