NEW DELHI: GINA Rinehart has entered a bid to buy one of the country’s largest cattle stations for $365 million in partnership with a Chinese real estate firm Shanghai Cred,: according to news.com.au
The wealthy mining magnate entered a bid for nation’s largest private landholding, S Kidman & Co, through joint venture company Australian Outback Beef Pty Ltd.
The company is 67 per cent owned by Hancock Prospecting and 33 per cent owned by Shanghai Cred.
Kidman is one of Australia’s largest beef producers, with an average herd carrying capacity of 185,000 cattle. The company has pastoral leases covering 101,000 square kilometres across South Australia, Western Australia, Northern Territory, and Queensland.
The Hancock family started their first cattle station in North West Australia and Mrs Rinehart has grown the portfolio ever since.
“Kidman is an iconic cattle business established more than a century ago by Sir Sidney Kidman,” said Mrs Rinehart. “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.”
Shanghai Cred principal Mr Gui Guojie said partnering with Hancock had already proved to be a productive approach and he looked forward to working with Mrs Rinehart’s firm.
Hancock Prospecting noted in a statement that should the transaction be completed, the level of foreign ownership of Kidman would slightly reduce from the existing level of 33.9 per cent.
More than 600 interested parties have held discussions with sale manager Ernst & Young since the Kidman landholding went on sale almost 18 months ago.
The portfolio consists of 19 properties operated as 12 enterprises — ten cattle stations, a bull breeding stud farm and a feedlot.
The deal, which has already been attacked, will be subject to approval from Australia’s Foreign Investment Review Board and the Chinese government.
Garry Korte, CEO of Hancock, said: “The quality of the Kidman herd and channel country properties complement Hancock’s existing northern cattle properties, and align well with Mrs Rinehart’s plans to build a diversified cattle holding in Australia, taking advantage of integration opportunities.”
Chairman of Kidman John Crosby said Kidman shareholders were pleased with the arrangement.
“We welcome the significant investment proposed in addition to the purchase price and are confident that the Kidman business will be in good hands”, he said.
The offer is dependent on the completion of the divestment of the Anna Creek station and the Peake by Kidman to other Australian grazing interests.
The proceeds from the sale of Anna Creek and the Peake will be paid to Kidman and retained in the company for the benefit of Australian Outback Beef.