CANBERRA, Aug. 22 (Xinhua) -- The sale of Australia's largest cattle rearing company, S. Kidman & Co, has been put on hold as foreign buyers are becoming hesitant to submit bids amid government rejection of foreign offers for Aussie companies.
Bids for Kidman & Co, the nation's largest private land holding, were expected to have been received last month, however, after two prior bids were rejected by the federal government over national security and national interest concerns, prospective buyers are choosing to wait until the government clarifies its stance on foreign investment.
Chinese company Shanghai Pengxin has already had one bid rejected by federal Treasurer Scott Morrison; the 281 million U.S dollar bid was deemed not in the "national interest" and the bid was withdrawn.
Shanghai Pengxin has indicated it would not submit another bid until the government or S. Kidman & Co could clarify what an acceptable arrangement would be.
A statement from S. Kidman and Co provided to News Corp outlet on Monday said there were "no indicative timelines in place for the transaction," even though the pastoral company had been listed as "for sale" for more than 18 months.
"The vendors are in discussion with a number of potential bidders and there is unlikely to be any outcome for some months," the statement said.
In addition the uncertainty surrounding foreign investment, last week the Chinese Embassy warned the federal government that a lack of clarity surrounding foreign investment bids could have a "serious impact on the enthusiasm" of other prospective Chinese buyers.
Meanwhile, National Farmers Federation chief executive Tony Mahar asked the government to quickly provide clarity over the sale of Australian-owned and state-owned assets to foreign buyers, as it could negatively affect the chance for Aussie businesses to sell in the future.
"A market operates effectively when vendors and purchasers know what the criteria are and what they need to do to get a sale or to provide investment," Mahar told News Corp on Monday.
"It appears there is not enough certainty and clarity over the investment regime and the investment landscape."
"We want to make sure that there is the right mechanism in place to monitor (foreign investment), and to make sure that it is good for the industry, but we don't want to send mixed signals about Australia being 'open for business' or not."
The government has previously spruiked that it is "open for business" in terms of foreign investment, however, recent bid rejections have been to the contrary, undermining the stance that Australia welcomes foreign investment.
