Harvard Business School Case Study
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Shenzhen Development Bank
Case Report
Section A: Group 6
Name
CATALOGUE
PART 1: BACKGROUND INTRODUCTION ..................................................................... 1
PART 2: THE INVESTMENT VALUE OF SHENZHEN DEVELOPMENT BANK ..... 1
PART 3: RISK ANALYSIS .................................................................................................... 2
PART 4: RISK CONTROL .................................................................................................... 4
PART 5: ADVANTAGES POSSESSED BY NEWBRIDGE IN THE SDB
INVESTMENT ........................................................................................................................ 4
PART 6: THE VALUE-ADDED FROM NEWBRIDGE AS A PRIVATE EQUITY ....... 6
PART 7: VALUATION OF SDB ........................................................................................... 8
1.
THE PRICE OF SDB’S TRADABLE SHARES ..................................................................... 9
2.
PEER COMPANY TRANSACTION ................................................................................... 10
3.
PRICE TO BOOK RATIO (P/B RATIO) ............................................................................ 13
4.
PRICE TO PPP ............................................................................................................... 14
5.
CONCLUSION ................................................................................................................ 15
PART 8: REASON FOR NEWBRIDGE FAILURE .......................................................... 17
PART 9: KEY LESSONS FROM THE FAILURE ............................................................ 19
PART 10: REACTION OF NEWBRIDGE ......................................................................... 19
1.
IMMEDIATE REACTIONS