China's Bright Food Group will sweeten its offer to buy CSR Ltd's sugar business and hopes to complete the deal by the end of the year, the China Daily reported today Thursday, citing a top company official.
In January, the CSR rejected a $US1.4 billion offer from Bright Food for its 150-year-old sugar business, and said it would continue to pursue the separation of its sugar and building products business.
CSR shares jumped on the news, and were recently trading 4 cents, or 2.5 per cent, higher at $1.67.
"Bright Food is in touch with CSR, and it is likely that the deal could be finalized this year, as our offer is still attractive," said Ge Junjie, deputy general manager of Bright Food Group, according to the paper.
The paper cited him as saying the company planned to raise its offer but did not say by how much.
Bright Food will send a team of officials to Australia later this month for consultations with CSR, Ge told the paper.
CSR and Bright Food representatives in Sydney said they were not aware of any new offer. The Chinese firm would need to raise its offer by up to 20 per cent to win over the CSR board, analysts have said.
Bright Food is also considering acquisitions of sugar businesses in other regions such as South America and New Zealand, Ge told the China Daily but did not give details.
Reuters
