Shaw and Partners corporate advisory has teamed up with DomaCom to assist the dealer group with its Kidman Station crowdfunding proposal.
DomaCom chief executive Arthur Naoumidis said Shaw and Partners would assist DomaCom in splitting the Kidman group of properties from the operating business if DomaCom successfully acquires the land.
S Kidman and Co came to market several months ago and was acquired by Chinese interests in October. However, the sale was blocked by the Foreign Investment Review Board (FIRB).
At the request of financial adviser and pastoralist Stephen Burgin, DomaCom stepped in to create a book-build for Australian investors, several hundred of whom have since lodged expressions of interest in participating in the acquisition.
As DomaCom is only interested in the land, however, an operator is being sought to manage the business, stock, plant and equipment, and Shaw and Partners has agreed to provide advice about how to achieve the best outcome for a new Kidman operating entity. This could involve an IPO, a joint venture with a listed company or a separate transaction.
"Kidman management appears to be looking at breaking up the holding to overcome FIRB's concerns, but we think there is a better solution in splitting the property from the operational business," Mr Naoumidis said
"Anyone taking on management of the business would more likely prefer to invest their capital in the business than the land, which is why we have engaged Shaw and Partners to investigate this option."
Earl Evans, head of wealth management at Shaw and Partners, added, "We believe the DomaCom crowd-investing model is a very workable solution and that we can add value to the Kidman group with an alternative structure that can potentially deliver a more profitable outcome.
"Clearly the crowd-funding approach has touched many Australians' hearts, but first and foremost we are looking for a strong investment outcome on the property and business sides."
In addition to the hundreds of mum and dad and SMSF investors, DomaCom has sought interest from the superannuation sector, with a few industry funds – which are keen on infrastructure investment – responding.
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