A CONSORTIUM made up of four Australian grazing families has made an official offer of $386 million for S. Kidman & Co today.
The consortium known is BBHO is represented by Tom Brinkworth, Sterling Buntine, Malcolm Harris and Viv Oldfield.
The BBHO trumps a $365m offer made by an the joint bid by Australian Outback Beef Pty Ltd (AOB) on October 9. AOB is 67 per cent owned by Gina Rinehart's Hancock Prospecting and 33pc owned by Chinese company Shanghai CRED.
Spokesman Sterling Buntine said the BBHO consortium had developed a compelling and superior proposal to the AOB offer recently supported by the Kidman board, which will see Kidman 100pc Australian owned.
“BBHO’s financing is committed and our proposal does not require Foreign Investment Review Board approval which means greater certainty for the Kidman shareholders,” Mr Buntine said.
“The Kidman story and legacy of Sir Sidney Kidman is in the DNA of our cattle industry. Sir Sidney was a pioneering nation-builder who’s values and vision helped build Australia into a respected leader in the global beef industry.
“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.”
S. Kidman & Co is one of Australia's largest beef producers, with an average herd of 185,000 cattle. The company has properties covering some 101,000 square kilometres across South Australia, Queensland, Western Australia, and the Northern Territory. The company has 19 properties operated as 10 cattle stations, a bull breeding operation and the Tungali feedlot at Sedan, SA.
Mr Buntine said the BBHO families had direct, active, inter-generational involvement within the industry, and continue to this day to passionately work within their respective agricultural operations.
Interests of the BBHO group span livestock, grain, transport and other industry services.
“As Australian grazing families we share a strong affinity with the Kidman properties,” Mr Buntine said.
“My father carted cattle for Kidman for many years, while several members of the Oldfield family earned their stripes as drovers on Sir Sidney’s properties. More recently the Brinkworth family’s epic 18,000 head cattle drive from central west Queensland to southern NSW followed in Sir Sidney’s similar footsteps from earlier this century.
“Together the BBHO families intend to maintain and expand a Kidman branded cattle marketing and export operation representing the families combined herd in excess of 500,000 head.
“This initiative would more than treble the size of the herd currently marketed under the Kidman name.”
Mr Buntine said said an Adelaide office would be maintained and the Tungali feedlot retained.
“BBHO looks forward to working with Kidman management and employees as we implement growth and development opportunities for the business,” Mr Buntine said.
“As Australian graziers we feel very privileged to be able to present this offer to the board and shareholders of Kidman.
“We look forward to the opportunity to progress discussions with the Kidman board in respect of our offer.”
The consortium has retained Agrify and Hindmarsh Partners as financial advisors on the transaction.
The BBHO offer is subject to a number of conditions including that BBHO acquires a relevant interest at least 90pc of all Kidman shares on issue.