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Singapore Airlines Limited: Dividends
Emir Hrnjić; David ReebCase IVEY-9B18N018-EFinance, StrategyA new analyst has been asked to forecast the upcoming dividends for Singapore Airlines Limited. However, unlike most dividend-paying firms, which typically maintain stable, transparent, and simple dividend policies, Singapore Airlines maintained an opaque, complex, and irregular pattern of dividends. Further, the company did not respond to requests for information about expected dividends or the company's dividend policy. The analyst decided to g...Starting at €8.20
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The Game of Financial Ratios
Pooja Gupta; Madhvi Sethi; Darroch A. RobertsonExercise IVEY-9B17B001-EAccounting and Control, StrategyThis exercise revolves around the rivalry between two financial analysts. Upset by their constant game of one-upmanship, an advisor to the governor of the Reserve Bank of India came up with a challenge for them to prove who was better. He provided them with financial data for the financial year ending March 2014 from 10 anonymous companies and asked them to match the financial data with specific industries given in a list. The challenge was timed...Starting at €8.20
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Swadhaar: Self-Support through Financial Services
Rajesh Panda; Madhvi Sethi; Pooja GuptaCase IVEY-9B20N002-EEntrepreneurship, FinanceSwadhaar FinServe Private Limited (Swadhaar), a non-banking financial company–microfinance institution (NBFC-MFI), was set up in Mumbai, India in 2008 with the objective of providing the urban poor with increased access to financial services. Swadhaar was a leading provider of financial services to clients in several major states of India. Between 2009 and 2013, there were major changes in the regulatory environment; some of these restricted the ...Starting at €8.20
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Singapore Airlines: A Rights Issue during the COVID-19 Crisis
Emir HrnjićCase IVEY-W24460-EFinanceIn early 2020, Singapore Airlines Limited (Singapore Airlines) faced severe liquidity issues as the global pandemic halted its flights and uncertainty loomed. Erstwhile massive cash reserves were quickly running out, and the airline’s executives pondered how to save the company from insolvency. Singapore Airlines’ majority shareholder, Temasek Holdings Limited, agreed to subscribe to a massive capital-raising exercise of up to S$15 billion via a ...Starting at €8.20
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OCBC Versus Elliott Management: Acquisition of Wing Hang Bank
Emir HrnjićCase IVEY-9B15N010-EFinance, StrategyA Singapore-based financial services company, the second largest lender in Southeast Asia, offered to acquire a Hong Kong bank, the eighth largest lender in the country, for a premium price per share. Three months later, a multi-billion hedge fund firm based in the United States had accumulated close to 8 per cent of the Hong Kong bank’s shares. According to Hong Kong’s securities law, the Singapore-based financial institution would have to acqui...Starting at €8.20
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Suntech Power: Competition and Financing in China's Solar Industry
Emir HrnjićCase IVEY-9B15N019-EFinance, StrategyIn 2011, Suntech Power, the world’s largest solar panel manufacturer, found itself in a highly problematic position. Recent developments in the Chinese solar power industry had negatively impacted the company’s operations. As the industry had matured, the demand for Suntech Power’s products had become highly volatile. Changing policy regulations, the ambiguous financial structure of the firm and a shift in consumers’ perceptions of the product we...Starting at €8.20
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Alibaba's Bonds Dilemma: Location, Timing, and Pricing
Emir HrnjićCase IVEY-9B17N001-EFinance, StrategyIn 2014, Alibaba—the Chinese e-commerce giant who, in September 2014, completed the largest initial public offering (IPO) in New York Stock Exchange (NYSE) history—was preparing itself for an additional round of capital fundraising. This time, Alibaba focused its efforts on a new, large bond issue. Its chief executive officer would lead Alibaba’s finance team in meetings with investors in Hong Kong, Singapore, and London to gather information abo...Starting at €8.20
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Emirates Airline: A Billion-dollar Sukuk-Bond Issue
Emir Hrnjić; Harun Kapetanović; David ReebCase IVEY-9B14N002-EFinance, StrategyEmirates Airline (EA) needs to fund the purchase of 30 new A380 aircraft. On March 11, 2013, EA announced plans to issue US$1 billion of Islamic bonds (sukuk) and $750 million of regular bonds. These bonds arguably share similar risks and seniority even though the sukuk bonds sold with a lower implied yield. This difference in pricing for securities with similar default risks seems at odds with conventional finance thinking. Against this backdrop...Starting at €8.20
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Toyota's Innovative Share Issue (2015)
Emir HrnjićCase IVEY-9B16N008-EFinance, StrategyIn June 2015, the Toyota Motor Corporation’s annual shareholders’ meeting included a proposal regarding Toyota’s new share issue. Named “Model AA” shares after the company’s first passenger car, the shares would offer investors new hybrid securities. This proposal created a lot of controversy among existing shareholders. Although President Toyoda claimed that no one would be disadvantaged by these shares, it remained unclear how many shareholders...Starting at €8.20
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McDonald’s in India: Not a Happy Meal
Paul W. Beamish; Pooja Gupta; Madhvi SethiCase IVEY-9B19M129-EStrategyIn September 2017, news spread of McDonald’s India terminating its franchise arrangement with its joint venture (JV) in India. The termination notice was the newest step in the saga of the conflict between the two JV partners—US-based McDonald’s and the IStarting at €8.20