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Category: Company News / Business, Economics and Finance / Rural / Livestock / Beef Cattle

Australian graziers outbid Rinehart for Kidman cattle empire

Sunday, 23 Oct 2016 13:16:28 | Dominique Schwartz

A number of successful outback businessmen have entered the bidding ring for S Kidman and Co. (Alice Mabin)

An all-Australian syndicate has made a $386 million bid for the Kidman cattle empire, trumping that of mining magnate Gina Rinehart and her Chinese joint venture partner.

The offer by four families with extensive livestock and transport operations is unconditional and is more than the joint bid by Ms Rinehart's Hancock Prospecting and Shanghai CRED.

The tycoons hoping to outbid Rinehart


There are now five Australian outback dynasties vying for the sprawling S Kidman and Co properties, and a conclusion to the highly political 18-month saga could be just months away.

"We have developed a compelling and superior proposal to that recently supported by the Kidman Board which will see Kidman 100 per cent Australian owned," said West Australian and Northern Territory pastoralist Sterling Buntine, who is a member of the BBHO syndicate.

"The four families comprising the consortium are deeply committed to honouring and preserving the Kidman heritage and brand, which will continue under the stewardship of highly regarded and successful Australian graziers."

BBHO also includes South Australian Tom Brinkworth, Malcolm Harris from New South Wales, and Viv Oldfield from Alice Springs.

The families already own huge chunks of pastoral land in northern and central Australia, Queensland, New South Wales and South Australia, and between them run about 400,000 head of cattle, Mr Buntine told the ABC last week.

Infographic: S. Kidman and Co's cattle stations are spread out over 101,000 square kilometres of central Australia. (Supplied)

The syndicate is bidding for the entire Kidman business, including the defence-sensitive Anna Creek Station, near the Woomera weapons-testing range.

The greatest advantage for the domestic syndicate is that its offer does not require Australian foreign investment approval or regulatory clearance by Chinese authorities as does the bid by Australian Outback Beef (AOB) — the joint venture company 67 per cent owned by Hancock Prospecting and one-third owned by Shanghai CRED.

The Kidman board is required to consider any offer that is higher or superior to the one on the table, but the Hancock-Shanghai team would have a right to match any rival bid should it gain foreign investment approval.

External Link: BBHO offer for S Kidman and Co

AustraliaPlus


 

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