CSR reviewing options after court decision
Australian building materials and sugar group CSR has said they will take time to assess the ramifications of a Federal Court decision yesterday that effectively blocked their plans for a demerger.
The Federal Court ruled that shareholders should not be able to vote on plans to separate their sugar and renewable energy businesses from the rest of the group because it would make them “less likely” to be able to meet asbestos liabilities. A ruling CSR disputes.
“The Board of CSR believes the strategy of separating its two very different operating businesses has the potential to create additional shareholder value,” the company advised in a statement.
“CSR has always taken its asbestos liabilities very seriously. In developing the demerger proposal, the Board has undertaken significant due diligence and given prudent and comprehensive consideration to conclude that CSR will continue to responsibly meet asbestos claims, as it has for over 20 years.
“The Federal Court decision appears to have broad implications. CSR will review the judgement and will advise the market when it has further considered all legal and commercial aspects of the matter.”