Major Australian beef producer S Kidman & Co Ltd (Kidman) entered into an agreement on Tuesday with Chinese-based Dakang Australia Holdings and ASX-listed Australian Rural Capital Ltd to sell the company for 370.7 million Australian dollars (288.69 million U.S. dollars).
The company operates 10 cattle stations covering 101,000 square kilometers across regional South Australia, Queensland, Western Australia and the Northern Territory.
Kidman Chairman John Crosby said the Consortium and Kidman have complied with all requests that have been made by the Foreign Investment Review Board (FIRB) and believe the sale will secure the long-term future of the Kidman enterprise.
"The significant investment proposed by the Consortium will see an increase in production and the expansion of international markets for Kidman beef, the majority of which is already exported," Crosby said.
"The Kidman board will recommend that Kidman shareholders accept the Consortium's subject to there being no superior proposal, the Independent Expert concluding that the both fair and reasonable and the transaction being permitted to proceed under Australia's foreign investment legislation."
Dakang Australia Director Gary Romano said the company was delighted to have Australian Rural Capital as its partner given their expertise in the local agriculture sector and the opportunity it will provide Australian investors to participate in the Kidman business.
Kidman was founded in 1899 and is Australia's fifth largest beef cattle producer.
