CSR Ltd &lt;CSRA.S> said it will offer 2.20dlrs cash each for the shares it does not already hold in
&lt;Pioneer Sugar Mills Ltd>.
    CSR already holds 31.74 pct of Pioneer's 99.80 mln issued
shares, it said in a statement.
    The offer price values the entire Pioneer Sugar share
capital at 219.6 mln dlrs and compares with today's closing
market level of 1.85 dlrs a share.
    CSR said it will announce further details of the offer
soon, including an alternative offer of CSR shares for Pioneer
Sugar stock.
    It said the offer is generous since it will give Pioneer
Sugar shareholders a price equivalent to 29 times Pioneer's net
earnings last financial year and a premium of 22 pct over
yesterday's market price which CSR said it believed already
contained an element of takeover speculation.
    It also gives a premium of 91 pct over Pioneer's last
reported net tangible assets per share, CSR said.
    CSR said the generous offer price reflects the cost savings
which will flow from integrated management of CSR's and
Pioneer's raw sugar mills and building materials businesses.
    These economies can only be achieved through CSR control
and management of Pioneer Sugar, it added.
    The takeover announcement came soon after CSR's earlier
reported statement that it will sell its &lt;Delhi Petroleum Pty
Ltd> unit to an Exxon Corp &lt;XON> unit for 985 mln dlrs and not
proceed with the previously announced float of part of Delhi.
 REUTER
