CSR completes sale of Sucrogen

CSR Limited announced today that it has successfully completed the sale of Sucrogen to Wilmar International for a total payment of $A1.843 billion.

The underlying enterprise value of Sucrogen remains at A$1.75 billion with the increase accounted for in the Purchase Price Adjustment to reflect CSR’s funding of Sucrogen since 1 April 2010.

“The transaction marks a significant milestone in the 155 year history of CSR,” said CSR Chairman, Dr Ian Blackburne.

“The transaction completes the separation of our two very different businesses which we believe is in the best interests of all our stakeholders. Sucrogen is now part of Wilmar, a leading regional agribusiness group.”

As advised previously,

CSR proposes to return approximately A$800 million to its shareholders,(approximately 52.7 cents per share) as a result of the sale. The return of funds will comprise a capital return and a fully-franked special dividend.

CSR expects to provide further details of this capital management in early 2011, including the proposed split of the fully-franked special dividend and capital return and the proposed timing of a shareholders’ meeting to approve the capital return.