Gina Rinehart’s joint venture with Chinese-owned Shanghai Cred has increased its bid for S Kidman and Co to $386.5m.
In a joint statement with Rinehart, S Kidman and Co chairman John Crosby said his fellow directors would recommend shareholders accept the offer from the mining billionaire’s vehicle, Australian Outback Beef.
Rinehart, whose initial bid was $21m lower, would own two-thirds of Australian Outback Beef with Shanghai Cred owning the remaining third if the bid was successful.
Rinehart said that her principal company, Hancock Prospecting, would buy Kidman if the bid was knocked back by Australia’s Foreign Investment Review Board (Firb) or the People’s Republic of China approval processes.
“I stand behind the bid and should FIRB or PRC approvals not be achieved, then Hancock will proceed with the acquisition on a 100% basis,” Rinehart said.
“I hope this provides shareholders with significant comfort and that when they consider the offer they can do so in the knowledge that there is no FIRB or PRC execution risk, and further that we have the money to invest to properly maintain the stations and their hard-working staff.”
Crosby, who “acknowledged the strong credentials of the company led by Mrs Rinehart”, said: “Under the ... offer the core Kidman business will remain intact and the Kidman staff and legacy will be looked after,” Mr. Crosby said.
Although Australian Outback Beef was already the preferred bidder, Kidman received a late outside offer from the BBHO consortium, made up of four Australian graziers, Sterling Buntine, Tom Brinkworth, Malcolm Harris and Viv Oldfield.
BBHO had offered $386m including the Anna Creek station, which has an area up to 26,000 hectares adjacent to the Woomera weapons testing range.
BBHO was supported by federal independent MP Bob Katter and senator Nick Xenophon, both of whom attended the BBHO announcement in federal parliament.
Kidman’s assets comprise 101,411 sq km – 2.5% of Australia’s agricultural land or 1.3% of its land mass, stretching across Western Australia, South Australia, Queensland and the Northern Territory.
The sale of the Kidman properties has been in train for 18 months and the board has previously signalled it wanted the land held together.
Earlier this week, Buntine said he and fellow buyers would divide most of the Kidman properties between them but maintain the S Kidman brand for marketing across their own herds of cattle as well as the 185,000 Kidman herd.
In April the treasurer, Scott Morrison, blocked the sale of S Kidman & Co to a majority Chinese-owned consortium because it could have been contrary to the “national interest”.
It is understood under both buyers, Anna Creek station would be sold off. Until the shareholders accept the offer, outside bidders are still free to compete.
