China’s Donlinks Grain & Oil Co. Ltd Bids for Australia’s S. Kidman & Co.
Guangzhou-based vegetable oil producer, Donlinks Grain & Oil Co. Ltd is the latest Chinese company to enter the bidding for control of Australia’s largest landholder and one of its largest beef producers, S. Kidman & Co.
Through a statement to the Shenzhen Stock Exchange, Donlinks, one of China’s largest vegetable oil producers, announced it would be partnering with British Virgin Islands-registered Genius Link Capital to make a second-round offer for S. Kidman at the end of the month.
If the bid is successful, Donlinks would acquire a 51% stake in Kidman which controls 100,000 square kilometers of land, including 11 million hectares of cattle stations (including the world’s largest cattle station – Anna Creek) and which is expected to be valued in excess of $325 million.
Last year Donlinks, which imports soybeans and produces animal feed and vegetable oil, spent $773 million for the purchase of a state-owned fertilizer business as part of a strategy to diversify its operations after facing challenges over the past 18 months with falling prices and softening demand.
Donlinks stated it will be signing a memorandum of understanding with Genius Link, its partner in the offer, later this week.
Genius Link was established in the Virgin Islands in February of this year with two directors and US$50,000 of registered capital.
Donlinks joins a list of other Chinese bidders looking to acquire S. Kidman including financial services group, Zendai, textile, property and logistics group, Shanshan Group, and a consortium consisting of state-backed develolper, Shanghai CRED and two private companies.