DomaCom Engages Shaw and Partners to Assist Kidman Crowdfunding

Monday December 21, 2015

Arthur Naoumidis, CEO of crowd-funder DomaCom, today announced a partnership with Shaw and Partners corporate advisory to assist DomaCom split the Kidman group of properties from the operating business if DomaCom successfully acquires the land.

S. Kidman and Company came to market several months ago and was acquired by Chinese interests in October. But 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 to participate in the acquisition.

As DomaCom is only interested in the land, 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.

Naoumidis said: “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.

“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.

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