BBHO Announces $386m offer for S.Kidman and Co

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A consortium comprising four Australian grazier families represented by Messrs Tom Brinkworth, Sterling Buntine, Malcolm Harris and Viv Oldfield (BBHO or the consortium), today announced its intention to submit a $386 million offer to acquire 100% of the shares of S. Kidman and Co. (Kidman) (the Offer).

Consortium spokesman Sterling Buntine said: “We have developed a compelling and superior proposal to that recently supported by the Kidman Board which will see Kidman 100% 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.”

“The Kidman story and legacy of Sir Sidney Kidman is in the DNA of our cattle industry. Sir Sidney was a pioneering nation-builder whose 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,” Mr Buntine said.

The BBHO families have direct, active, inter-generational involvement within the industry, and continue to this day to passionately work within their respective agricultural operations.

Interests of the group span livestock, grain, transport and other industry services.

Mr Buntine said: “As Australian grazing families we share a strong affinity with the Kidman properties. 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 New South Wales 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.

 

An Adelaide office will be maintained and the Tungali feedlot will be retained and BBHO looks forward to working with Kidman management and employees as we implement growth and development opportunities for the business.

“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,” Mr Buntine said.

The Consortium has retained Agrify and Hindmarsh Partners as financial advisors on the transaction.

Conditions

The Offer will be subject to a number of conditions, which are set out in Annexure A. These include a condition that BBHO acquires a relevant interest at least 90% of all Kidman shares on issue.

The Offer is not subject to approval by the:

• Foreign Investment Review Board; or

• Peoples Republic of China’s respective regulators including the National Development and Reform Commission, the Ministry of Commerce or the State Administration of Foreign Exchange.

Other information

Full particulars of the Offer will be outlined in the Bidder’s Statement, which will be despatched to Kidman and sent to Kidman shareholders in due course.