CSZ Csr

RNS Number:2075H
CSR Ld
07 February 2003

             CSR LIMITED TO PUT DEMERGER PROPOSAL TO SHAREHOLDERS



CSR Limited (CSR) announced today that it is proceeding with plans to put a
demerger proposal to shareholders.



CSR's 112,000 shareholders will be asked to vote on the demerger at meetings to
be held in Sydney on 25 March.



The Federal Court of Australia today approved the convening of the meetings and
the dispatch of an explanatory booklet for shareholders.



The demerger is in line with the CSR strategy over the past five years and
involves spinning off the group's heavy building materials assets (primarily
aggregates, premix concrete, cement and concrete pipe & products) from the other
CSR group businesses.



The demerger would result in two separate Australian companies, both listed on
the Australian Stock Exchange:



*              Rinker Group Ltd (RGL) - a focused, heavy building materials
group, comprising Rinker Materials Corporation in the US and the Readymix and
Humes businesses in Australia and Asia.  RGL is expected to be one of the top 10
heavy building materials stocks in the world, based on a number of measures,
including cash flow.  It will continue its growth strategy of building strong
regional market positions for its key products.   RGL should also be better
positioned to participate in the ongoing consolidation of the international
heavy building materials sector.  With around 85% of earnings* from Rinker
Materials in the US, it is expected that over time, investors will value RGL
more in line with its US peers.



*              CSR Limited, after the demerger, will be a diversified,
Australian company, holding some of the best known household brands in the
country.  The group will comprise three businesses  - CSR Building Products,
Aluminium and CSR Sugar.  CSR is expected to focus more effectively on the
respective strengths of these businesses and to pursue value-adding, low risk
growth options, which have previously ranked as a lesser priority for the CSR
group.   CSR, after the demerger, is expected to distribute a higher level of
its profits as dividends than it does currently.  A high level of franking is
generally expected.



The explanatory booklet for shareholders will be lodged with the Australian
Stock Exchange prior to the commencement of trading on Monday 10 February.  It
is scheduled to be mailed to shareholders after printing in approximately two
weeks.



*  Business earning before corporate costs, interest and tax for the year ended
30 September 2002



For further information, please contact Debra Stirling on 61 2 9235 8040 or 0419
476 546



7 February 2003
                                     CA&IR 06/03


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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