Australian Rural Capital (ARC) has made a stock exchange announcement that it is partnering with China’s Shanghai Pengxin Group as part of a re-structured bid for S. Kidman & Co, according to MSN. In its statement to the stock exchange, ABC reports that ARC noted, “It is the current intention of ARC to seek to raise equity funds in the Australian capital markets which will enable Australian investors the unique and direct opportunity to invest in Kidman in a fund and/or investment company managed by ARC."

 

Capitalized at nearly $4 million, ARC has focused on cotton investments to date, however, executive chairman, James Jackson, who is also the deputy chairman of Elders Ltd. and cattle businessman, told shareholders at last year’s annual meeting that the company was exploring investment opportunities in beef, sugar, wine and nuts as well, reports China Daily.

 

Shanghai Pengxin placed an initial bid last year for S. Kidman, which has 101,000 square kilometers of land and runs 185,000 head of cattle, reported to be $370 million, which Federal Treasurer, Scott Morrison rejected, claiming that to accept a single foreign owner for such a property was not in the best interest of the country.

 

In addition to partnering with ARC, Snaghai Pengxin has also reportedly removed the controversial Anna Creek Station from its offer. As the single largest parcel of land within the S. Kidman portfolio, Anna Creek posed a significant road block to a foreign purchase as half of the parcel fell within the Woomera Prohibited Area in South Australia.

 

Mr. Morrison will announce a ruling on the re-structured foreign bids once he receive a recommendation from the Foreign Investment Review Board (FIRB). If a foreign bidder is approved, domestic parties will be granted four weeks in which to make a counter bid.