CSR Ltd &lt;CSRA.S> said it plans to offer 3.50 dlrs a share cum-bonus for all the issued capital of building products group Monier Ltd &lt;MNRA.S>. The offer values Moniers 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 Fridays 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 323000 Monier shares or only 0.21 pct of the companys 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 CSRs 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 Fridays 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 CSRs 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.
CSR PLANS TAKEOVER BID FOR MONIER