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CSR posts loss of $111.7 million as sale of Sucrogen looms

CSR has posted a net loss for 2010 of $111.7 million, an improvement on the $326.5 million loss in 2009, a 66 percent improvement for the company.

CSRCSR, which operates in the sugar, energy and building products market is under continued speculation that it will sell its sugar division Sucrogen to Chinese company Bright Food Group Co. However the company has indicated that while talks with Bright Star are ongoing, CSR will continue with plans to demerge the sugar and energy operations from its core building products division.

Analysts predict a binding offer for Sucrogen from Bright Food Group Co within the next few weeks, with the company conducting its final due diligence on the purchase currently.

“It is the intention of the Board to afford Bright Food a fair and reasonable opportunity to complete due diligence in a timely manner, confirm its valuation of $1.75 billion and progress the obtaining of both Australian and PRC regulatory approvals,” CSR managing director Jeremy Sutcliffe said in a statement today.

CSR is understood to also have received expressions of interest in Sucrogen from Mitsubishi-Mitsui and Brazilian sugar giant Cosan, but it is not clear whether these companies will make a formal bid for the business.

Mr Sutcliffe said both Sucrogen and CSR Building Products had improved their performance in the year, with higher sugar prices assisting the bottom line.

“While Sucrogen benefited from a higher average realised raw sugar price, the improved reliability and performance in the mills following the capital upgrade program also assisted in achieving a very strong result,” Mr Sutcliffe said in a statement on Wednesday.

“Our building products businesses in general have performed creditably in what continued to be a challenging environment for most of the year and remain well positioned to capitalise on emerging signs of recovery, particularly in residential construction.” Mr Sutcliffe said.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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