CSR SELLS SUCROGEN TO WILMAR FOR A$1.75 BLN

MELBOURNE, July 5 (Bernama) -- CSR has agreed to sell its sugar and
renewable energy business, Sucrogen, to Wilmar International Ltd, a
Singapore-listed agribusiness group, for A$1.75 billion (A$1=RM2.67).

In a statement, CSR chairman, Ian Blackburne, said the sale achieved the
company's objective of separating its two different operating businesses.

The deal required Foreign Investment Review Board approval, as well as the
green light from the Overseas Investment Office in New Zealand, CSR said.

It said the sale was expected to be completed by the last quarter of 2010.

CSR said the company was "evaluating a range of capital management options"
for the A$1.6 billion net proceeds from the sale.

"The company will also review a variety of strategic opportunities over the
coming months and capital management decisions will be made following this
review.

"In evaluating these options, CSR continues to accept its responsibilities
with respect to its asbestos liabilities and will maintain a responsible capital
structure to support its future obligations," it said

CSR managing director, Jeremy Sutcliffe, said the price was an "attractive
valuation" and would deliver significant value to shareholders.

Sutcliffe said selling Sucrogen would leave CSR to focus on growing its
building products business.

CSR had previously confirmed as late as June 21 that it had continued talks
with Bright Food Group over its proposal to acquire the company's sugar
business.

Meanwhile, CSR said it would defer the implementation of its demerger of
Sucrogen until Dec 31.

"If for any reason the sale cannot be completed, CSR may seek to proceed
with a form of demerger," it said.

Wilmar said it would use the Sucrogen acquisition to build a significant
sugar business, utilising its proven integrated agribusiness model to replicate
its success in other agri-commodities.

"The acquisition of Sucrogen will jump-start this strategy to expand into
sugar," it said in a statement.
-- BERNAMA


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