Oz dairying attracts big-ticket buyers
The latest Dairy Australia National Dairy Farmer Survey (NDFS) shows farmers in many regions investing, or planning to invest, in their businesses, because of robust business confidence.
Mining magnate Gina Reinhart has signed a deal offering $365 million for S Kidman and Co, a massive beef producer with an average herd of 185,000 cattle.
Reinhart’s company Hancock Prospecting Pty Ltd is teaming up with Shanghai CRED Real Estate Stock Co Ltd for the S Kidman bid. The sale requires the approval of Australian regulatory authorities and the Australian and Chinese governments.
An earlier bid by Shanghai CRED to buy 100% of S Kidman was knocked back by Federal Treasurer Scott Morrison.
Under the deal announced last week, Hancock and the Chinese have formed a joint venture company, Australian Outback Beef Pty Ltd (AOB), owned 67% by Hancock and 33% by Shanghai CRED. They offer to buy 100% of the shares of Kidman, conditional on the transaction being allowed in its current form under Australia’s foreign investment regime and to People’s Republic of China (PRC) government approvals.
The deal also includes S Kidman selling the Anna Creek station and the Peake to other Australian grazing interests. The proceeds of the sale of Anna Creek and the Peake would be paid to Kidman.
Rinehart, chairman of the Hancock Group, says she will work with the Kidman management and staff to grow and develop the operations.
“Kidman is an iconic cattle business established more than a century ago by Sir Sidney Kidman. It is an operation founded on hard work and perseverance by an outstanding Australian, and is an important part of Australia’s pioneering and entrepreneurial history,” she says.
Hancock chief executive Garry Korte says the quality of the Kidman herd and properties complement Hancock’s existing northern cattle properties, and align well with Rinehart’s plans to build a diversified cattle holding in Australia.
The Hancock family started their first cattle station in northwest Australia, and founded the first port in the area at Cossack on the West Pilbara Coast to enable the cattle trade. Since then Rinehart has extensively grown the Hancock business.
Principal of Shanghai CRED, Gui Guojie, says that partnering with Hancock had already proved a productive approach. And the chairman of S Kidman, John Crosby, also welcomed the deal.
“We welcome the significant investment proposed in addition to the purchase price and are confident the Kidman business will be in good hands,” Crosby says.
