Building products and sugar business CSR Ltd
(ASX:CSR) has completed the institutional component of its $375 million entitlement offer.
The company says the offer garnered strong support from institutional investors with over 99 per cent of entitlements taken up.
Acceptances under the institutional entitlement offer came to approximately $192 million at an offer price of $1.66 per new share, resulting in approximately 116 million new CSR shares.
Managing director Jerry Maycock says the proceeds of the entitlement offer will be used to pay down debt and facilitate the demerger of CSR’s Sugar and Renewable Energy Business, resulting in two well capitalized standalone companies on the ASX.
The retail component of the entitlement offer will open on November 2, with shares offered at the same price. CSR posted a $326 million loss in 2009.
