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Category: Rural / Regional Development / Business, Economics and Finance / Livestock

Rinehart's company questions all-Australian bid for Kidman cattle empire

Monday, 24 Oct 2016 03:47:20 | Dominique Schwartz

All-Australian syndicate BBHO outbid Hancock for the Kidman cattle empire by more than $20 million. (Amy Phillips)

An Australian syndicate's claim that its $386 million offer for the Kidman cattle empire is "superior" has been questioned by rival bidder Hancock Prospecting.

Key points:

  • Hancock spokeswoman says bids "essentially the same" when including break fee, accounting for Anna Creek Station
  • Australian syndicate outbid Chinese-Australian joint venture Australian Outback Beef's offer of $365 million
  • AOB yet to match rival bid

The BBHO syndicate informed the Kidman board on Sunday that it intended to lodge its bid this week for all of the shares of S Kidman and Co.

"We have developed a compelling and superior proposal to that recently supported by the Kidman Board," said Sterling Buntine, referring to the $365 million Australian-Chinese bid led by Hancock's Gina Rinehart.

But the price of the two bids is "essentially the same" when Anna Creek Station is removed from the calculations and an almost $4 million break fee is included, according to Hancock spokeswoman Sophie Mirabella.

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.

Mrs Rinehart has a strong track record and unlike her rival bidders would keep the Kidman landholding together, she said.

The all-Australian BBHO syndicate is bidding for the entire Kidman business, including Anna Creek Station in South Australia, which is the world's largest working cattle station, consisting of more than 23,000 square metres of land.

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 story and legacy of Sir Sidney Kidman is in the DNA of our cattle industry," Mr Buntine earlier said in a statement.

"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."

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

The sale to AOB would not include Anna Creek station and The Peake.

Their offer still requires various state and Chinese Government approvals, and must pass Australia's foreign investment review process.

The BBHO 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.

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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