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On 3 March 1999, the Financial Secretary of Hong Kong announced in his budget speech that the Government planned to partially privatise the MTR Corporation (MTRC) through the sale and listing of a minority interest in the Corporation''s shares. The listing of this integrated rail operator on 5 October, 2000 created an important precedent for future privatisation of government assets. However, a host of uncertainties remained about how value enhancement is achieved in this privatisation. This case would be an excellent vehicle for students to explore the motives behind the privatisation of government assets and the implications of privatisation for management''s operating and financial strategy. Students can compare and contrast the privatisation methods used by different countries to privatise railways and can assess the appropriateness of the Hong Kong Government''s method of privatising the MTRC. At the same time, students can also evaluate the timing of the privatisation and the appropriateness of the offer price.