22 December 2010:  CANEGROWERS says Sucrogen sale to Wilmar a vote of confidence in Aussie sugar

CANEGROWERS has warmly welcomed news that Wilmar International has successfully closed the deal on Sucrogen.

“This is a strong vote of confidence in the future of the Australian sugar industry,” said CANEGROWERS CEO, Steve Greenwood, following news that the $A1.843 billion deal had gone through.

“We understand that Wilmar intends a significant injection of much needed capital, to bring greater efficiencies to the crushing process.”

Wilmar comes into the industry during a time of significant stress, and are doing so with their eyes wide open. “News on the Sucrogen sale has been particularly good, in light of the very ordinary season that has been 2010. Wilmar’s purchase shows that it is backing a strong future for the Australian industry.

“We look forward to working with Wilmar and Sucrogen’s management team to develop further growth in our industry over future years.”

CSR’s press statement today said the underlying enterprise value of Sucrogen remains at A$1.75 billion with the increase accounted for in the Purchase Price Adjustment to reflect CSR’s funding of Sucrogen since 1 April 2010.

It confirmed that CSR proposes to return approximately A$800 million to its shareholders, (approximately 52.7 cents per share) as a result of the sale. The return of funds will comprise a capital return and a fully-franked special dividend.