Proposal
•Hera Holding is looking for investment partner to launch its new brewery in Mongolia;
•The construction of the factory is a turnkey project by German equipment supplier;
•German brewery and Hite will provide brewmasters;
•Total project cost is MNT27billion; (1 EUR = 1,712.08 MNT)
•Hera holding will invest MNT1billion cash, land valued at MNT2billion, and Hera Foods valued at MNT5.4billion (2009);
•Thus, we assume that the project needs approximately MNT4billion equity investment, in return, investor will own approximately 30% of the company;
•According to our model, the NPV of the project is MNT13billion, with 30% IRR.
