Hancock Prospecting says its bid for Kidman cattle business is superior to BBHO’s

By @vitthernandez on
Sir Sidney Kidman
The Hancock joint venture (JV) bid with Shanghai CRED commits 100 percent that it would not break the Kidman properties or business in any substantial way. YouTube/RadioGraham 1938

When the BBHO syndicate told the Kidman board on Sunday that it would lodge this week a bid for all shares of the cattle empire, Sterling Buntine from BBHO claimed its $386 million offer is better than Hancock Prospecting’s $365 million offer. Hancock, however, disputes the claim.

Hancock, owned by Australia’s richest person, Gina Rinehart, says its joint venture bid is superior to BBHO’s offer.  In a press release, Garry Korte, CEO of the Hancock Group, points out that the Kidman shareholders, board and management team specify that it is not interested in bids that would break the Kidman business established in 1899 by Sir Sidney Kidman and built over the past century.

The Hancock joint venture (JV) bid with Shanghai CRED commits 100 percent that it would not break the Kidman properties or business in any substantial way. Since Anna Creek has national security concerns, the JV has in place a sale contract for the property which is less than eight percent of the overall carrying capacity.

Ties between the Kidmans and Hancock go a long way since James Nicholas, the grandfather of Rinehart, is a long-term friend and business partner of Kidman. Korte assures if Hancock wins the bid, the JV would not shutter or radically change the Kidman’s head office in Adelaide.

He also stresses Hancock is an Australian bid since Rinehart is a fourth-generation Australian from a long line of pastoralists, beginning with her great grandfather. Beyond the family lineage, Korte adds that Hancock has the capital, workable plan and market access to grow Kidman.

“A break up of the 100 year legacy started by Australia’s iconic Sir Sidney Kidman would be very sad and definitely not what he would have wanted after so much efforts,” Korte says.

The Australian Financial Review notes that the BBHO family syndicate are “tough, wealthy, hard working graziers” who carry the underdog status as they take on Rinehart and her JV partner for the 10-million hectare Kidman cattle empire.

Interestingly, the business daily reports that while Hancock’s spokesperson is former MP Sophie Mirabella, BBHO just hired GraCosway as its public relations person. GraCosway represented Dakang Farming which made a bid for Kidman in 2015 but was rejected by the federal government.