CSR challenges Bright Food to raise offer
January 26, 2010
CSR Limited (CSR) confirmed that it had spoken to Chinese food company Bright Food Group last week, however it had only received confirmation of its previous expression of interest. CSR, however, challenged the company to increase its offer for the Australian company, saying that at this stage it was proceeding with its proposed demerger of its sugar and renewable energy business.
The CSR board said that it was “only willing to progress any transactions alternative to the demerger if such transactions have a sufficiently high degree of certainty as to value, timing and likelihood of completion.”
CSR said that Bright Food was becoming aware of the real value of the business, however had not made a superior offer to its demerger proposal, despite having the necessary information available.
”Therefore, CSR remains committed to progressing the demerger proposal and has today reconfirmed that commitment to Bright Food,” the company said.
At the close Monday, CSR shares were $1.915.
The CSR board said that it was “only willing to progress any transactions alternative to the demerger if such transactions have a sufficiently high degree of certainty as to value, timing and likelihood of completion.”
CSR said that Bright Food was becoming aware of the real value of the business, however had not made a superior offer to its demerger proposal, despite having the necessary information available.
”Therefore, CSR remains committed to progressing the demerger proposal and has today reconfirmed that commitment to Bright Food,” the company said.
At the close Monday, CSR shares were $1.915.
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