S. Kidman & Co sale agreed on, needs Federal Government approval
THE sale of Australian pastoral giant S. Kidman and Co to a China-backed consortium is one step closer.
China-backed Dakang Australia and ASX-listed Australian Rural Capital this afternoon announced they had entered into a bid implementation agreement on the sale, valued at $370.7 million.
S. Kidman and Co is one of Australia’s largest beef producers with a herd of 185,000 cattle. It has pastoral leases covering 101,000 square kilometres in NSW, Queensland, South Australia and the Northern Territory.
Under the deal, the consortium will acquire 100 per cent shares in Kidman at a value of $31.38 per share. The offer is conditional on the transaction receiving the green light from the Foreign Investment Review Board.
Dakang Australia will cough up 80 per cent of the purchase price with ARC to pay the remaining 20 per cent.
Kidman chairman John Crosby said the company was “very pleased to have reached agreement on the sale terms with the consortium as our preferred bidder
“The consortium and Kidman have complied with all requests that have been made by the FIRB and we believe the sale will secure the long-term future of the Kidman enterprise,” Mr Crosby said in a statement.
“The Kidman board will recommend that Kidman shareholders accept the consortium’s offer subject to there being no superior proposal, the Independent Expert concluding that the offer is both fair and reasonable, and the transaction being permitted to proceed under Australia’s foreign investment legislation.”
As per requirements from the Federal Government, the 2.3 million hectare Anna Creek Station will not be included in the sale