SUN Brewing (B) Harvard Case Solution & Analysis

In July 2004, Shiv, NAND, and Uday Khemka discuss their interest in SUN Interbrew, Russia's leading producer of beer, which is part of the global portfolio of the family business. SUN Interbrew operates as a joint venture in 1998, when the family Khemka, who founded its predecessor company SUN Brewing in the early 1990s, decided to cooperate with the Belgian beer giant Interbrew, to survive the Russian financial and economic crisis. Since then, the family used capital and Interbrew beer industry know-how for a successful business. Now, a few events prompt Khemka family consider liquidity event. The five-year agreement with the family lock Interbrew has just expired. In March 2004, Interbrew has announced plans to take a controlling stake in the Brazilian giant AmBev, a deal that will create the world's largest brewer. In addition, Alfa Group, a Russian conglomerate, which has become the third largest shareholder of SUN Interbrew, announced its intention to participate in the management of the company and to achieve a leading position in the Russian beer market. There is a role for the Khemka family in the future of this company? Should they retain some stake in the company and will continue to participate in its management? Do they have to auction off their shares at a high price and get out? Or they have an important role in the global beer industry through a stock-for-sale of shares with InBev, and, if so, at what price? "Hide
by Belen Villalonga, Raphael Amit Source: Harvard Business School 20 pages. Publication Date: November 28, 2006. Prod. #: 207039-PDF-ENG

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