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Rinehart, Shanghai Cred launch Kidman bid

AAP logoAAP 9/10/2016

Mining magnate Gina Rinehart's Hancock Prospecting has joined with a Chinese company to launch a $365 million takeover bid for Australia's largest private land holding S Kidman and Co.

The joint venture, Australian Outback Beef Pty Ltd, and the Kidman bid was announced by Hancock Prospecting on its website on Sunday.

Australian Outback Beef is 67 per cent owned by Hancock Prospecting and 33 per cent owned by Shanghai Cred Real Estate Stock Co Ltd, according to the announcement.

The offer is conditional on the sale being permitted by Australia's foreign investment regime and People's Republic of China government approvals.

It is also conditional on the divestment of Anna Creek Station and Peake by Kidman to other Australian grazing interests.

Money from those sales will be paid to Kidman and retained by the company for the benefit of Australian Outback Beef.

The retainment of those proceeds makes the effective net price of the Kidman takeover about $365 million, the announcement says.

Ms Rinehart and Kidman chairman John Crosby both made statements in the announcements welcoming the bid.

S Kidman and Co is one of Australia's largest beef producers with a capacity of 185,000 cattle.

The company has pastoral leases spanning 101,000sq km across SA, WA, NT and Queensland.

In April, the Australian government rejected a $371 million bid by a Shanghai Cred and Hunan Dakang Pasture Farming co-headed consortium.

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