BBHO consortium makes an all-Australian bid for S. Kidman and Co pastoral empire

FOUR wealthy Australian families have collectively put their cards on the table with a $386 million bid for the S. Kidman and Co pastoral empire.

• All-Australian bid for Kidman could cause problems for Rinehart
• Rinehart’s bid for Kidman likely to be approved

FOUR wealthy Australian families have come in over the top of Australia’s richest woman with a $386 million bid for the S. Kidman and Co pastoral empire.

The offer from the BBHO consortium — represented by SA-based Tom Brinkworth, as well as Sterling Buntine, Malcolm Harris and Viv Oldfield — comes hot on the heels of a $365 million bid by mining billionaire Gina Rinehart’s Hancock Prospecting together with former bidder Shanghai CRED.

Sterling Buntine is part of the first all-Australian offer for the S. Kidman cattle empire.

Mr Buntine said BBHO’s “superior proposal” would “more than treble the size of the herd currently marketed under the Kidman name” to in excess of 500,000 cattle.

However, a spokeswoman for Hancock Prospecting — which would hold two-thirds of Kidman assets if its joint venture company Australian Outback Beef Pty Ltd was successful — said the value of the two bids was essentially the same.

This is because of a $3.8 million “break fee” and the removal of the politically sensitive Anna Creek and The Peake holdings from its original bid, she said.

After much chatter in recent days, Mr Buntine confirmed on Sunday afternoon that BBHO would officially submit a bid within days.

Mr Buntine, who visited Canberra last week to make his case for the bid, said that Kidman’s Adelaide office will be “maintained” and the Tungali feedlot retained.

Another key aspect of the BBHO offer is that it would not need approval from Australia’s Foreign Investment Review Board (FIRB).

Kidman holds approximately 1.3 per cent of Australia’s total land area, with its holdings spanning more than 100,000 sq km across Queensland, SA, NT and WA.

“We have developed a compelling and superior proposal to that recently supported by the Kidman board, which will see Kidman 100 per cent Australian-owned,” Mr Buntine said.

“BBHO’s financing is committed and our proposal does not require FIRB approval, which means greater certainty for the Kidman shareholders.”

While the Kidman shareholders’ advisers have an agreement to deal with Ms Rinehart’s consortium, competing bids were still able to be tendered.

If Kidman was to back out of the Rinehart deal, it would trigger a $3.8 million “break fee” payment to Ms Rinehart’s consortium — which holds the right to match a higher bid.

“At this stage we have not been informed by Kidman of the proposal made by the consortium and it will be up to the Kidman board to decide whether the offer constitutes a superior bid taking all the facts into account,” Ms Rinehart’s spokeswoman said.

SA senator Nick Xenophon said he was strongly in favour of the BBHO bid and that it would be “unforgivable” if Treasurer Scott Morrison didn’t favour the all-Australian option.

He said a successful BBHO bid would create “tremendous opportunity” for SA.

“This dramatic development has completely turned the Rinehart bid on its head,” he said.

“It would be unforgivable for the Treasurer to now approve the Rinehart bid considering the credible alternative, which has 100 per cent Australian ownership.

“These people have significant growth plans and they also have the experience, both major factors that must be taken into account.”

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