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SALE OF REFINERY INTEREST |
Sale of Refinery Interest - CSR Sugar has entered into a binding agreement to acquire Mackay Sugar Ltd’s 25% shareholding in the joint venture Sugar Refining businesses (Sugar Australia and New Zealand Sugar). The agreement values the 25% interest at A$100m. As consideration, Mackay Sugar will receive 8.77% interest in the demerged Sugar and Renewable Energy business.
- On completion of the transaction, CSR Sugar’s ownership of the Refining businesses will increase from 75% to 100%.
- Under the agreement, for a period of 12 months following the demerger, Mackay Sugar will be required to maintain a minimum shareholding of 7.5% in the demerged entity and will not be permitted to acquire additional shares (unless it makes an offer for 100% of shares).
- Mackay Sugar:
- Mackay Sugar is Australia's second largest sugar cane processing and sugar manufacturing company.
- Originally a co-operative, it converted to a restricted public company in July 2008.
- Mackay Sugar operates three sugar mills located in the Mackay District of Queensland. The three mills are capable of processing up to 6.5 million tonnes of cane to the factories for processing.
- On average, Mackay Sugar produces about 850,000 tonnes of raw sugar and 180,000 tonnes of the by-product molasses annually.
- Mackay Sugar is well placed to take advantage of renewable energy growth opportunities from it's productive base.
- CSR Limited has announced the demerger of its Sugar and Renewable Energy business.
- Through its refining joint ventures, Sugar Australia and New Zealand Sugar, the business has strong brand positions and an excellent reputation for customer value and innovative products in both the food and beverage and retail sectors.
- Moving to 100% ownership will simplify the corporate and management structure and also provide the demerged Sugar and Renewable Energy business with access to 100% of the Sugar Refining cashflows.
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Recent Transactions 