INDUSTRIAL giant CSR is facing a major battle to offload its sugar business, following a court judgment yesterday that blocked its demerger plans amid concerns about potential asbestos claims.
CSR had planned to demerge its sugar and renewable energy business into a spin-off called Sucrogen and a "new" CSR was to retain the building products, property and aluminium business, The Australian reports.
But Federal Court judge Margaret Stone said yesterday the proposed demerger was "inconsistent with public policy and commercial morality" and that as the new CSR company would be left with less capital, it would be less likely to be able meet its future asbestos liabilities.
She dismissed CSR's application to call a shareholder meeting on the proposal.
The ruling could result in a formal sale process of CSR's sugar business or a further consideration of the $1.5bn offer from Chinese company Bright Food, which yesterday said it was keen to meet with CSR.
Read more in The Australian.
