Despite reports this morning that CSR Ltd
(ASX:CSR) was poised to sell its sugar and renewable energy business, Sucrogen to China’s Bright Food Group, the company has instead agreed to a $1.75 billion deal with Singapore commodities group Wilmar International.
CSR Chairman, Dr Ian Blackburne says the sale of Sucrogen to Wilmar achieves the company’s objectives of separating its two very different operating businesses.
CSR says Wilmar is one of Singapore’s largest listed agribusinesses with a market cap of $31 billion.
The deal is expected to be finalised by September 30, and is subject to Australian Foreign Investment Review Board approval and the thumps up from the Overseas Investment Office in New Zealand.
CSR says it is evaluating a number of capital management options for the $1.6 billion net proceeds it will receive from the sale.
Following the sale, CSR says it will be a focused building products company with a strategic investment in a globally cost competitive aluminium smelter.
CSR booked a loss of $111.7 million for its fiscal year to March 30, 2010.
