GETTING 58 shareholders on board for the sale of 11 million hectares of cattle stations was never going to be easy.
But Australia's largest landholder S Kidman & Co is on the block, despite the reluctance of a majority of Kidman descendants.
The Australian Financial Review understands the company has enlisted independent corporate advisory firm Leadenhall to value the business after CBRE valued the properties.
Some sources suggested the Leadenhall appointment was to help assuage any disagreement among shareholders on S Kidman's valuation, although those close to the company say it's a normal course of action.
It's understood Leadenhall's role will involve advising shareholders on the attractiveness of bids.
S Kidman is said to be worth at least $325 million. Ernst and Young Adelaide is running the sale and an information memorandum was sent to prospective buyers last month.
Selling family-owned agriculture businesses has proven to be a tough business. The North Australian Pastoral Co (NAPCO) sale was withdrawn in 2013, after inbound approaches did not satisfy the expectations of all shareholders. NAPCO is owned by the Foster family and co-investor, London-based listed agribusiness firm MP Evans Group.
Kidmans driving big beef
In April, rural property deal broker Bruce Gunning said the Kidman family's decision to sell its inland beef cattle operation was likely to be warmly greeted by a select band of big money investors who badly want to get into the beef business.
"They're not in the market for Holden car-sized properties, they want road train-sized operations," Mr Gunning, the Sydney-based selling principal with national estate agency group Ray White Rural, said at the time.
He said while up to 80 per cent of current buyer interest in pastoral country, particularly in northern Australia, was from overseas, in some regions local investment interest was diverting from mining to agriculture.
"The strongest inquiry we're seeing for rural property at the moment is for beef cattle operations," Mr Gunning said, noting offshore interest was not confined to Asia, but also the United States, mainland Europe and the United Kingdom.
"And it's really picked up lately. We've seen more inquiry in pastoral properties in northern Australia in the past six months than we saw in the previous six years."
Gina in the market again
The unfolding sale of Kidmans' holdings comes after another chunk of iconic West Australian cattle country was sold to mining magnate Gina Rinehart in a deal set to exponentially expand her Australian cattle and dairy interests.
The Kimberley's 400,000-hectare Fossil Downs Station, previously owned by the Henwood family since 1882, is located at Fitzroy Downs, 430 kilometres from Broome's live cattle export port.
The property attracted plenty of interest prior to the July 2 offer period closing, but Ms Rinehart emerged as the sole buyer on Sunday, reportedly parting with $30 million to close the deal, although the sale price has not been disclosed.
- with Andrew Marshall