CSR Ltd &lt;CSRA.S> said it plans to offer3.50 dlrs a share cum-bonus for all the issued capital of
building products group Monier Ltd &lt;MNRA.S>.
    The offer values Monier's current issued capital of 156.28
mln shares at 547 mln dlrs and compares with the latest share
market price of 2.80 dlrs, equal to last Friday's close.
    Monier recently said it proposes to make a one-for-two
bonus issue before June 30.
    CSR will shortly announce further details of the offer
including a CSR share alternative, it said in a statement.
    CSR said it currently holds 323,000 Monier shares or only
0.21 pct of the company's issued capital.
    Redland Plc &lt;RDLD.L>, the holder of 49.87 pct of Monier,
has agreed with CSR that Redland will not accept the offer for
its stake initially, CSR said.
    Instead, CSR has granted Redland two alternative options,
the first giving Redland the right to accept the CSR offer at
the same price within six months of the closing date of the
bid, the company said.
    The second grants Redland the option to increase its Monier
holding to 50.1 pct in the same period.
    The second option is exercisable by Redland at 3.50 dlrs a
share, CSR said.
    Both option deals are subject to the approval of Monier
shareholders except CSR and Redland.
    As previously reported, Redland and Monier had been
discussing a possible Redland bid for Monier but the talks
broke off two weeks ago.
    CSR said Redland supports the CSR offer as a means of
establishing a fruitful joint venture in building materials in
which they both have interests. At the end of the offer, they
will discuss how these interests may be developed.
    Redland has indicated that it would be prepared to consider
at a later stage an increase in CSR's Monier stake to enable it
to become a CSR subsidiary, assuming Redland exercises the
second option, CSR said.
    It said the offer is generous because it will give Monier
shareholders a price equivalent to 16.8 times after-tax
earnings in 1985/86 ended June 30, a 25 pct premium over
Friday's market price and a 125 pct premium over last reported
net tangible asset backing per share of 1.57 dlrs.
    The offer is beneficial for both CSR and Monier
shareholders, CSR's chief executive officer Bryan Kelman said.
    "The acquisition will broaden CSR interests in building
materials by the addition of complementary domestic and
overseas businesses in concrete and clay tiles, metal roofing
materials and concrete blocks and piping," Kelman said in the
statement.
    "Importantly, the acquisition will provide CSR with new
growth opportunities in building materials both in Australia
and overseas," he added.
    Monier, which earned a net 32.49 mln dlrs in 1985/86, has
operations in a number of countries, including the U.S., Japan,
Britain and New Zealand, as well as Australia.
 REUTER
