CSR sugar offer sweetened 17%
March 31, 2010
CSR Limited (CSR) said this morning it has received a sweetened offer from Chinese food group, Bright Food, for its spin-off sugar business, Sucrogen. Under the new offer, Bright Food said it would pay an extra $250 million, for the business, bringing its total offer for Sucrogen to $1.75 billion.
CSR, in response, said it would explore the new offer further, entering into discussions with the food group.
At the same time CSR would also continue to look into demerging its sugar business, as has been previously announced. However the takeover offer from Sucrogen would almost certainly be a more attractive proposition following the federal court’s recent decision to block the demerger of its sugar business on concerns it would not be able to pay outstanding asbestos claims.
CSR said there was no guarantee the takeover would go ahead as it remains conditional on due diligence, regulatory approvals and execution of transaction documentation.
At the close of business Wednesday, CSR shares were trading at $1.665 each.
CSR, in response, said it would explore the new offer further, entering into discussions with the food group.
At the same time CSR would also continue to look into demerging its sugar business, as has been previously announced. However the takeover offer from Sucrogen would almost certainly be a more attractive proposition following the federal court’s recent decision to block the demerger of its sugar business on concerns it would not be able to pay outstanding asbestos claims.
CSR said there was no guarantee the takeover would go ahead as it remains conditional on due diligence, regulatory approvals and execution of transaction documentation.
At the close of business Wednesday, CSR shares were trading at $1.665 each.
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