Campbell R. Harvey's

Emerging Markets Corporate Finance

Case Presentations 2005

Raymond, India Ltd.

This case describes an investment decision undertaken by the Raymond Limited Textile division in early 2005 for a Greenfield integrated textile manufacturing plant in the South East Asian region. The textile industry was undergoing several changes due to the recent lifting of trade restrictions by the WTO and the company was considering its strategic options to take advantage of the opportunities available as well as combat the potential competitive threats domestically. It had thus decided to expand it's operations to other emerging markets, and was considering several locations within SE Asia, namely China, Thailand and Malaysia. This case details the potential benefits and risks that the company evaluated in making this decision.

Letter to instructor briefly outline objectives of case (one page) For instructor.
Case document. For students.
Supplementary spreadsheets for case. For students.
Proposed solution. For instructor. Email to obtain access.
Proposed solution spreadsheets. For instructor. Email to obtain access.
Powerpoint slides. Class presentation show.

The Expansion of the Panama Canal - Proprietary: Not Posted to Internet

The $5 billion expansion of the Panama Canal is essentially a hybrid project finance project. Typically for a project to be deemed "Project Finance" there is a corporate sponsor who invests in and owns a single purpose, industrial asset through a legally independent entity financed with non-recourse debt. In the expansion of the canal, there is no single corporate sponsor investing in the project however, the Panama Canal Authority (PCA) and therefore the Panamanian people own the canal and will be investing in the new expansion. In addition, the project is not necessarily a single purpose, industrial asset that is a legally independent entity from its parent corporation, but rather the project is an expansion on an existing asset using non-recourse debt.

Axesat, S.A.

Axesat, S.A. was facing financial decisions important to its future growth as an internet service provider in Latin America. Two-year old Axesat had proven that Colombia was ready for high speed internet throughout the country via a broadband satellite connection. Limited internet connectivity and low penetration rates in Colombia combined with the ability to service any region of this mountainous country were key demand drivers. The company was privately held and owned by a small group of Colombian entrepreneurs.

The Tropical Wood Consortium (TWC)

The Tropical Wood Consortium, spearheaded by the world leader in Brazil nut production – TAHUAMNU – was formed in 2004 to explore investment opportunities in one of the most diverse and still largely untapped forests in the world – the Bolivian Amazons. The project being considered complies with all environmental regulations and, if implemented, will give birth to the country’s largest and technologically most advanced processing plant of "ecologically sustainable" wood products. The challenge ahead is to evaluate this prospective opportunity against the risk of investing in a country undergoing a severe political crisis.

Letter to instructor briefly outline objectives of case (one page) For instructor.
Case document. For students.
Supplementary spreadsheets for case. For students.
Supplementary news releases, articles.
Proposed solution. For instructor. Email to obtain access.
Powerpoint slides. Class presentation show.

Bulgartabac

This case describes the failed attempt to privatize the Bulgarian state owned tobacco company: Bulgartabac. In 2005, an offer from British American Tobacco (BAT) was withdrawn, marking the fourth failed attempt to privatize the company in the last four years. The deal was a good deal with a fair price and attractive terms. The reason the deal fell apart had nothing to do with the financial or strategic goals of the buyer - it instead came about as a result of politics and social concerns.

Letter to instructor briefly outline objectives of case (one page) For instructor.
Case document. For students.
Supplementary spreadsheets for case. [Not currently available] For students.
Proposed solution. For instructor. Email to obtain access.
Proposed solution spreadsheets. [Not currently available] For instructor. Email to obtain access.
Powerpoint slides. Class presentation deck.

Asiana

[Few sentence description.]

Brunswick: Reynosa, Mexico Boat Manufacturing Plant (Project Cedar)

The Brunswick case examines the proposed opening of a boat plant in Reynosa, Mexico, by Brunswick. The case examines the process that Brunswick went through to value the project and makes recommendations as to enhancements to that valuation. The case is useful for those interested in determining the risks of doing business in Mexico.

Class of 2005 email

2005 Auditors email