CSR Sugar Disapproves Another Bid from Bright Foods

China-Bright-FoodCSR Ltd has again disapproved an approach from China's Bright Food (Group) Co Ltd to acquire its sugar business, revealing that the proposal is not clearly superior to its demerger plans.

CSR had announced it planned to spin off the sugar division last June, which comprises seven sugar mills in Queensland refineries and an ethanol plant. In November, CSR raised $375 million from shareholders to fund the demerger.

CSR Sugar, to be renamed Sucrogen following its demerger, is the largest raw sugar producer in Australia, producing 2.1 megatonnes annually.

In a statement to the Australian Securities Exchange (ASX) on Wednesday, CSR claimed that Bright's latest reflection of interest remained vastly conditional and non binding.

CSR quoted that it had suggested Bright Food that further discussions and due diligence would only take place if a proposal that was certain and represented superior shareholder value to the demerger was put forward ahead of next month's shareholder vote on splitting the company.

The company officials revealed that the demerger would not prevent Bright from aiming at the sugar business in the future.

Moreover, CSR is scheduled to seed approval from the Federal Courts in order to provide shareholders with details of the demerger and hold a shareholder meeting.