Khemka family of India - founders, directors, and most owners Russia based brewer SUN - faced with a difficult decision in 1998. After the massive devaluation of the ruble in August 1998, the stock price SUN Brewing, which is publicly listed on the Luxembourg Stock Exchange, down more than 90%. Only two months ago, they planned $ 200 million to $ 400 million of debt and equity shares on the New York Stock Exchange to finance major investments in the face of increasing competition from international companies in the Russian beer market. However, the devaluation of the ruble and a deep financial crisis, which led to the cancellation occurred proposed directory NYSE - and $ 40 million bridge loan, which must now be repaid. The family discussed the merits of the two basic options: To bring in a large international beer company as a strategic partner in this difficult time and to remain as the controlling owners to enter into the company of millions of dollars from other parts of the family business, and weather the storm until better conditions can be expected from any external providers of capital. "Hide
by Belen Villalonga, Raphael Amit Source: Harvard Business School 16 pages. Publication Date: August 17, 2006. Prod. #: 207022-PDF-ENG
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