Subject category:
Ethics and Social Responsibility
Published by:
Harvard Kennedy School
Length: 23 pages
Share a link:
https://casecent.re/p/6937
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In 1996, the government of Brazil attempted to sell the large, federally-owned power distribution company in Rio de Janeiro to private investors. The competitive auction for Rio Light was being heralded as a test of the entire Brazilian privatization program, which had been under criticism in the domestic and international press for its slow pace and lack of results. As the auction date draws near, the Director of Electricity Privatization at the Brazilian federal development bank is worried that the minimum-asking price for Rio Light was too high. The case presents pro-forma financial information and can be used to discuss the relevant factors for the valuation of a state-owned enterprise and the measures of success for the auction.
About
Abstract
In 1996, the government of Brazil attempted to sell the large, federally-owned power distribution company in Rio de Janeiro to private investors. The competitive auction for Rio Light was being heralded as a test of the entire Brazilian privatization program, which had been under criticism in the domestic and international press for its slow pace and lack of results. As the auction date draws near, the Director of Electricity Privatization at the Brazilian federal development bank is worried that the minimum-asking price for Rio Light was too high. The case presents pro-forma financial information and can be used to discuss the relevant factors for the valuation of a state-owned enterprise and the measures of success for the auction.