Australia’s Treasurer Scott Morrison approved on Friday [9 December 2016] the sale of Australia’s largest pastoral land holding ,S. Kidman & Co, to a partnership involving local mining magnate Gina Rinehart and Chinese consortium Shanghai CRED…Full Article: China Daily Dec 2016

Key Point

  • Australian Outback Beef (AOB), a joint venture between Australia’s Hancock Prospecting (67% control) and China’s Shanghai CRED (33% control), is projected to pay approximately US$295 million for S. Kidman and Co.

ChinaAg Comments

  • In early October 2016, Gina Rinehart’s Hancock Prospecting and Shanghai CRED Real Estate Stock offered to purchase S. Kidman and Co. for US$277 million. Hancock Prospecting would own 67% while Shanghai CRED Real Estate Stock would own the remaining 33%. Later in the month, the Hancock-CRED consortium upped their bid to approximately US$292 million.
  • In late April 2016, the Australian government preliminary vetoed the sale of S. Kidman and Co. to Shanghai Pengxin once again. Shortly thereafter Shanghai Pengxin withdrew its bid.
  • In March 2016, Australian Rural Capital has announced it was partnering with Shanghai Pengxin Group to purchase S Kidman & Co Ltd (Kidman). Hunan Dakang Pasture Farming (controlled by Shanghai Pengxin, listed in Shenzhen) has a 51% stake in the Chinese portion of the bid while Shanghai CRED Real Estate Stock (privately held) had the remaining 49% Chinese stake.
  • In the wake of the failed November 2015 deal, Kidman sold its South Australia properties of Peake and Anna Creek in order to allay FIRB national security concerns. Anna Creek was sold to Williams Cattle for approximately AU 16 million (~US$12 million).
  • In November 2015, the Australian government vetoed the sale of S. Kidman and Co., a major cattle operator, on national security grounds. According to Australia’s Treasurer, half of Kidman’s Anna Creek pastoral lease lies within the country’s Woomera Prohibited Area (WPA) testing range in South Australia.
  • In August 2015, representative of S Kidman & Co Ltd stated that final bids to purchase the company will occur in late October 2015 at the earliest.
  • In March 2015, Australia passed a law requiring Foreign Investment Review Board (FIRB) approval for the sale of agricultural land valued over AUD 15 million (~US$10.8 million).
  • Founded in 1999 and headquartered in Shanghai, Shanghai CRED Real Estate Stock is a private real estate company that was created by the Shanghai Municipal Government.
  • Founded in 1899 and headquartered in North Adelaide, South Australia, S Kidman & Co Ltd (Kidman) manages 101,000 sq. km. of land (~1.3 of Australia’s total area) and hosts 185,000 heads of cattle.

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