Australia's largest sugar refinery CSR Ltd., after reporting substantial losses, is now looking to sell as much as AU$375 million ($347 million) in shares. The offer is open to existing holders and is being introduced by the company to help it take care of the some of the debt that it has to repay.

For every 40 shares held, according to CSR's latest statement, the Sydney based firm is planning on selling 7 new shares. Each share will be priced at AU$1.66, which is 16% less than the last share trading price.

In addition to raising money for debts through the share sales, the company also aims at using the funds garnered for a de-merger it will soon be undertaking. "Sugar prices have been on an upward trajectory and the market is viewing the demerger as positive", said an Institutional dealer at IG Markets in Melbourne, Chris Weston.

While some very disappointing figures have been reported by CSR in the first half of the year, the company is positive that the shares sale and de-merger will make a lot of difference. Leading indicators have also suggested that the conditions are bound to improve in the second half.

(With Inputs from TopNews New Zealand)