Wilmar buys CSR’s Sucrogen
CSR shares rose 3.2 per cent this morning after the Australian conglomerate disclosed it had cut a deal to sell Sucrogen to Wilmar International for $1.75 billion, outdoing China's Bright Food Group offer of $1.65bn.
CSR chairman Ian Blackburne said in a statement the sale of Sucrogen to Wilmar, a Singapore-listed agribusiness group, achieved the company's objective of separating its two very different operating businesses.
As with any deal, the sale required Foreign Investment Review Board approval, as well as the green light from the Overseas Investment Office in New Zealand. The transaction is expected to be completed by the last quarter of 2010.
According to CSR, the company was ''evaluating a range of capital management options" for "CSR will also review a variety of strategic opportunities over the coming months and capital management decisions will be made following this review."
"In evaluating these options, CSR continues to accept its responsibilities with respect to its asbestos liabilities and will maintain a responsible capital structure to support its future obligations."
CSR managing director Jeremy Sutcliffe considered the sale price an "attractive valuation," saying it would deliver significant value to investors.
Mr Sutcliffe said the Sucrogen sale would allow CSR to concentrate on expanding its building products business.
CSR had previously announced continued negotiations with Bright Food Group over the altter's proposal to takeover Sucrogen.