SYDNEY: Australian conglomerate CSR Ltd has struck a deal to sell its sugar business to Singapore's Wilmar International Ltd for A$1.75 billion ($1.47 billion), trumping a bid from China's Bright Food Group.
CSR had been negotiating with Bright Food for about two months, and Australian newspapers reported earlier on Monday Bright Food Group had lodged a final bid for the sugar business, known as Sucrogen, of between A$1.65 billion and A$1.7 billion.
"The sale price of A$1.75 billion is an attractive valuation and will deliver significant value to CSR shareholders," CSR's Managing Director Jeremy Sutcliffe said in a statement.
Wilmar, the world's largest listed palm oil producer, said buying Sucrogen was part of its plan to expand its sugar business.
The purchase price was A$1.347 billion for equity and A$403 million for debt.
CSR said the deal is expected to be completed by the last quarter of 2010, and is conditional to approval by Australia's Foreign Investment Review Board (FIRB).
In May, FIRB delayed its decision on the Bright Food bid for up to 90 days, which raised concerns the bid may be blocked.
CSR said net proceeds from the deal would be about A$1.6 billion, and it would consider a range of options for the funds. - Reuters
CSR had been negotiating with Bright Food for about two months, and Australian newspapers reported earlier on Monday Bright Food Group had lodged a final bid for the sugar business, known as Sucrogen, of between A$1.65 billion and A$1.7 billion.
"The sale price of A$1.75 billion is an attractive valuation and will deliver significant value to CSR shareholders," CSR's Managing Director Jeremy Sutcliffe said in a statement.
Wilmar, the world's largest listed palm oil producer, said buying Sucrogen was part of its plan to expand its sugar business.
The purchase price was A$1.347 billion for equity and A$403 million for debt.
CSR said the deal is expected to be completed by the last quarter of 2010, and is conditional to approval by Australia's Foreign Investment Review Board (FIRB).
In May, FIRB delayed its decision on the Bright Food bid for up to 90 days, which raised concerns the bid may be blocked.
CSR said net proceeds from the deal would be about A$1.6 billion, and it would consider a range of options for the funds. - Reuters
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