The Federal Court if Australia has approved the shareholder meeting to vote on the demerger proposal for CSR. Following this, CSR has announced that they will be taking the proposal to its shareholders for approval.
The proposal is consistent with their strategy over the last five years and will see them spin off their heavy building materials divisions if approved.
The demerger would results in two separate companies listed in the Australian Stock Exchange:
Rinker Group Ltd – This division will include the Readymix and Humes businesses in Australia and Asia, as well as Rinker Materials in the USA. With a focus on heavy building materials, it is expected that Rinker will be one of the top 10 heavy building materials stocks in the world. The demerger will allow Rinker to continue their growth strategy of building strong market positions for its key product areas, as well as enabling them to consolidate in their global market sector.
CSR Limited – This company will be comprised of CSR Building Products, Aluminium and CSR Sugar. This new company will allow these individual organisations to focus on their respective strengths as well as pursuing value adding, low risk growth options.
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