CSR, Australia’s second-largest maker of building products, is planning to spin off its sugar unit to take advantage of a 27 per cent jump in prices for the sweetener in the past year and improving capital markets.

The demerger plan is targeted for completion by the end of the year ending March 31, the Sydney-based company said. Shares of CSR, Australia’s biggest sugar refiner, rose 6 per cent on investor optimism for the plan, flagged by the company more than two years ago. Sugar is the best-performing commodity in the past year because of a worldwide production shortfall.