It is encouraging to read the newspaper reports of the stated intentions for CSRs sugar business by Bright's deputy general-manager in China. But it must be remembered that no formal offer has been made, no matter what was claimed to have been said. Besides, it would not be a good idea to finalise negotiations for any trade sale at this stage while regulatory uncertainties exist. In my view,the best path for CSR is to continue progressing along in negotiations with Brights (and any other interested parties), without finalising anything, just in case things change.
Given the present circumstances, I believe CSR management is pursuing the right course by appealing the single judge federal court decision to block its proposed demerger to the full bench of the same court. (The hearing is scheduled for the end of this month). Importantly, the company is also seeking legal clarification of its position, which will have implications for its various other operating strategies. The company needs to maintain as many options as possible open to it, pending the outcome of the appellate court decision. Hopefully, these legal determinations will make it clearer as to which is the best option to follow for the sugar business.
Disclaimer
Please note that I am not providing advice, information, recommendations or predictions. The above statements are merely my own comments and thoughts as an ordinary shareholder without any special skills or knowledge. I absolutely disclaim any responsibility or liability whatsover for any consequences arising from the use of my comments and thoughts expressed. If you require advice or information, you should seek the services of an appropriately qualified independent expert professional person as well as do your own proper research.
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