Response to Bright Food

CSR Limited advises that, following discussions with Bright Food (Group) Co. Ltd last week, CSR has received correspondence from Bright Food essentially restating its previous highly conditional, non-binding expression of interest in acquiring CSR’s Sugar and Renewable Energy business.

CSR believes that the approach from Bright Food is indicative of a developing broader appreciation of the potential value of its Sugar and Renewable Energy business created as a result of its demerger proposal.

To avoid compromising the value creation potential of the demerger proposal and in light of the advanced state of the demerger process, the CSR Board is only willing to progress any transactions alternative to the demerger if such transactions have a sufficiently high degree of certainty as to value, timing and likelihood of completion.

On previous occasions, and again recently, CSR has advised Bright Food that, in order to engage in further discussions or due diligence, CSR must be satisfied that Bright Food could present a proposal ahead of the demerger shareholder vote that is sufficiently certain and clearly superior to the demerger in terms of shareholder value. Bright Food has not provided such assurance, despite having had access to significant information and several months to present such a proposal.

Therefore, CSR remains committed to progressing the demerger proposal and has today reconfirmed that commitment to Bright Food.

CSR notes that the implementation of the demerger will not preclude Bright Food from approaching Sucrogen in the future.