Building materials manufacturer CSR has confirmed media reports from last week that it is looking at selling its weakly performing Viridian glass business.
CSR told the ASX that it had received interest from prospective buyers and it was “reviewing strategic alternatives … including potential sale options”.
“CSR has received interest from external parties attracted to acquiring the Viridian assets as a platform for growth,” it said in a statement.
Whilst there has been no decision to sell the business at this stage, CSR intends to assess this potential interest over the next few months.”
Shares in CSR increased more 2.5% to $4.22, in a market that was weaker all day. Investors clearly want action on this business.
CSR’s latest yearly results, to March 31, revealed earnings in the Viridian business, which it bought for $1.2 billion about a decade ago, had fallen sharply 50 to $3.5 million.
The group had attributed the poor result to “operational issues” at a new commercial factory in Ingleburn, New South Wales, and a $4 million hike in energy costs.
CSR on Wednesday said Viridian’s performance in Australia and New Zealand was improving, and the business “remains on track to increase earnings this year”.
