CSR Limited announced today that it has received a conditional offer from Bright Food (Group) Co. Ltd ('Bright Food’) to acquire CSR's Sugar and Renewable Energy business, Sucrogen.
The offer contains:
a proposed enterprise value of A$1,750 million for Sucrogen (excluding refining minority interests), an increase in value of A$250 million from the previous expression of interest from Bright Food;
further information in relation to progressing the requisite regulatory approvals in both China and Australia;
certain positive undertakings regarding future Sucrogen operations in Australia.
The offer remains subject to a number of conditions including completion of due diligence, regulatory approvals and execution of transaction documentation. Accordingly, there is no certainty that any transaction will be completed with Bright Food.
CSR intends to enter into discussions with Bright Food to explore this proposal further.
Concurrently, CSR continues to progress other options for the separation of its two operating businesses, including via a demerger. CSR’s appeal of the decision declining to order the convening of a shareholders’ meeting to consider its demerger proposal was heard on 29 and 30 March 2010. The full Federal Court has reserved its decision.
CSR will continue to advise the market of further developments as appropriate.