Australian manufacturer CSR said Monday it was selling its sugar and renewable energy arm to Singaporean agribusiness Wilmar for 1.47 billion US dollars, ditching an offer from China's Bright Food Group.
CSR said it had looked at different options for off-loading sugar-giant Sucrogen before agreeing the 1.75 billion Australian dollar sale, which matched Bright Food's conditional offer in April.
"We have been working towards this objective for some time and having explored a number of strategic alternatives, the board believes a sale to Wilmar is in the best interests of shareholders and stakeholders in CSR," chairman Ian Blackburne said in a statement.
Sucrogen produces about two million tons of raw sugar a year, about 40 percent of the total from Australia, a major regional supplier.
CSR had been in talks for several months with Bright Food, which was reportedly considering lowering its bid.
Even if the sale is blocked by foreign investment regulators, the company said it might demerge Sucrogen to concentrate on its building products business and interests in an aluminium smelter.
Sucrogen also has a 75 percent stake in refiner Sugar Australia, and produces ethanol and electricity.
CSR shares were trading 3.2 percent higher at 1.75 dollars after the deal was announced.
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