Bright is sweet on Australias CSR

Bright is sweet on Australia's CSR

Australian conglomerate CSR Ltd has again rejected an approach from China's Bright Food Group to acquire its sugar and renewable energy business.

In a statement to the Australian Stock Exchange, CSR said that last week's discussions with Bright resulted in the Chinese group again communicating its previous “ highly conditional, non-binding expression of interest”.

Earlier this month, CSR had rejected an overture from Bright, insisting that demerging its sugar and renewable energy business was preferable to a sale.

“CSR believes that the approach from Bright Food is indicative of a developing broader appreciation of the potential value of its sugar and renewable energy business created as a result of its demerger proposal,” the company again insisted today (28 January).

To avoid compromising the “value creation potential” of the demerger, and in light of the advanced stage of the demerger process, CSR said that its board would only progress any alternatives if such deals have a “sufficiently high degree of certainty” on value, timing and likelihood of completion.

“CSR remains committed to progressing the demerger proposal and has today reconfirmed that commitment to Bright Food,” the company added.