Corporate Financial Restructuring:

• fix the equity
• fix the debt
• fix the control

Day 2
Reconfiguring and Designing Corporate Debt

Day 3
Financial Engineering and Restructuring Corporate Ownership

Day 4
Restructuring Corporate Ownership, continued

Day 5
Corporate Financial Restructuring: DBS Applications

Background Materials on Corporate Finance

Financial Restructuring in Asia: Issues and Opportunities
 

Case Study: Intralinks
Assignment: In 1999 Intralinks, a fast-growing "dot com" company based in New York's Silicon Alley, was seeking advice on the next stage of financing its growth. What do you recommend? 

Case Study: Photronics
Assignment: This global manufacturer of photomasks, with significant operations in Singapore, is seeking funds for expansion of its production facilities in Asia and Europe. One recommendation is that the funding be obtained through a debt issue. Does this make sense, given the company's stage in its corporate life cycle and its capacity for further leverage? 

Case Study: Thai Petrochemical Industry
Assignment: TPI, the heavily indebted Thai company, is under pressure to recapitalize. Having completed a restructuring of its debt, the company plans to reduce its debt/equity ratio to below 0.5 by the end of 2000. How could this be done? What method should it have used to ensure the company's long run survival? What can be learned from the way Siam Cement and Siam Commercial Bank have approached their refinancing? 

Case Study: Astra International
Assignment: What kind of financial restructuring is needed to make the company attractive to foreign equity investors, domestic and foreign? What kind of rate of return would such investors expect? 
 

Case Study: Nokia 2000
Assignment: Read the questions posed by Nokia's CFO, and consider the way in which they were answered.

Case Study: Nokia -- The Early Years and Exhibits (Acrobat file) 
Assignment: What form of financing should Nokia use to finance its $400 million US acquisition? 

Case Study: DBS Pens
Assignment: How do these securities deal with foreign ownership restrictions? 

Case Study: Exportadores Pesces de Concepcion (Acrobat file) 
Assignment: In what currency should Chile's salmon exporters finance their exports to Japan? Pesos? Yen? Dollars? Krone? 

Case Study: Financing Ciba and Exhibits (Acrobat file) 
Assignment: What is the recommended maturity, interest contract, and currency to finance Ciba's future investments? 

Case Study: Ban Pu Coal Company and Exhibits (Acrobat file) 
Assignment: What is the recommended maturity, interest contract, and currency to finance Ban Pu’s Mai Moh project and future expansion?
 

Case Study: Ban Pu Convertible Bond
Assignment: How did this baht-denominated convertible bond work, and where did it fit in with Ban Pu’s recapitalization?  When should a company issue bonds (or arrange a term loan) with stock warrants? 

Case Study: 6 Battery Road
Assignment: What is the nature of the options given to the investor in this deal, and what are they worth? 

Case Study: The Acquisition of Feng-Shui Compass Company
Assignment: What was the maximum price that PT Fakawi should offer for Feng-Shui? 

Case Study: Ipoh-Kelantan
Assignment: Quantify the synergies and other effects of a merger between two Malaysian banks, and assess whether the shareholders of each bank will be better off, or worse off, after the merger. 
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Case Study: Ipoh-Kelantan (continued)
Assignment: You are advising Kelantan Bank on its proposed acquisition of Ipoh Bank. Value the two banks and advise on the acquisition price, the form of payment, and the financing. 

Case Study: Valuing Amazon.com (Acrobat file) 
Assignment: Do you agree with the valuation method used by the analysts? What are the alternatives? 
See also Atoms, Bits and Cash

Case Study: The Bid for Yeo Hiap Seng (Acrobat file) 
Assignment: A hostile acquisition in Singapore illustrates the key valuation issues in M&A in a competitive bidding context