CSR confirms rejection of Bright offer

Posted by Daniel Palmer on 15th January 2010

CSR has today advised their shareholders that an assessment of the non-binding offer from China’s Bright Food Group has resulted in them dismissing the proposal.

“CSR Limited has considered the expression of interest from Bright Food Group Co., Ltd including its offer to hold discussions to develop a proposal to acquire CSR’s Sugar and Renewable Energy business,” they said in a statement.

“CSR remains focused on maximising shareholder value. Its preferred option continues to be to progress the demerger proposal of its Sugar and Renewable business as the Board is of the opinion that the demerger is in the best interests of shareholders.

“CSR will continue to keep the market informed.”

The ASX-listed firm also responded to a query from the stock exchange as to the flow of events on Tuesday when the offer first became public.

The ASX expressed concern that CSR may have breached its obligations of keeping the market fully informed of material events. A letter from the exchange to CSR sought clarification of the timing of their knowledge of the Bright Food offer and why they didn’t request a trading halt.

CSR advised that they only became aware of the proposal at the same time that news services did (between 8:30am and 9am) with a halt not called for due to the lack of detail in the non-binding offer.

“CSR does not concede that the information contained in the Media Statement is material to CSR or that at 10.00 am AEDT on Tuesday 12 January 2010 the information was not generally available,” they said.

The company’s shares shot up eight per cent between market opening at 10am on January 12 and the release of a statement of clarification at 10:33am.