Robert Holmes à Court

Add links
Source: Wikipedia, the free encyclopedia.

Robert Holmes à Court
Born
Michael Robert Hamilton Holmes à Court

(1937-07-27)27 July 1937
BAgrSci)
University of Western Australia (LLB
)
Occupation(s)Lawyer, businessman
Years active1968–1990
Known forAustralia's first billionaire
Spouse
​
(m. 1966)​
Children4, including Peter Holmes à Court, Paul Holmes à Court, and Simon Holmes à Court
Notes

Michael Robert Hamilton Holmes à Court (27 July 1937 – 2 September 1990) was a South African-born Australian businessman who became Australia's first billionaire, before dying suddenly of heart failure in 1990 at the age of 53.

A great-great-grandson of William Holmes à Court, 2nd Baron Heytesbury, and a grand-nephew of William Frederick Holmes à Court, 3rd Baron Heytesbury, Holmes à Court was one of the world's most feared corporate raiders through the 1980s, having increased his properties single-handedly from virtually nothing to a diversified resources and media group with an estimated value immediately before the 1987 stock market crash of about A$2 billion. Shareholders in the company enjoyed enormous investment growth. During 1984 Robert Holmes à Court's horse Black Knight won the Melbourne Cup with a time of 3 minutes 18.19 seconds.

Holmes à Court died intestate, and his estate was to be divided one-third for his widow Janet (née Ranford), and the remainder equally among their four children, who include Peter, Paul, and Simon.

Early life

Holmes à Court was born in

Natal, South Africa. There he earned money selling his schoolmates photographs he had taken of them, and by driving them home in exchange for their travel allowances.[6]

Holmes à Court studied forestry at the

admitted to practise on 17 April 1968. He then worked as a barrister and solicitor. His law practice in Perth was sometimes in partnership with Nicholas Hasluck
.

Business career

Holmes à Court entered the corporate stage by accident in 1970, when his law firm was asked to act as

administrative receiver of a small publicly listed company, Western Australian Worsted & Woollen Mills (later Albany Woollen Mills, also known as AWM or WA Wool). The company was the single largest employer in the regional city of Albany. In what he later described as his most challenging "takeover" — probably because it was his first —, he found a way to invest $500,000 in the ailing business, on the proviso that the state Minister for Industry, Sir Charles Court, would persuade the Government of Western Australia
to forgive the $500,000 in loans they had made.

The source of funds for his initial investment in WA Wool were never made clear, since the $75,000 deposit for the purchase price of WA Wool shares came from a bank account that he shared with the partners in his law firm at the time, and his partners asked for these funds to be repaid.[7] Nevertheless, since Holmes à Court had no other apparent source of income at the time, a possibility is that his mother Ethnee financed his first foray into business, since she had stood to inherit from her mother Florence, who in turn had stood to inherit from her second husband H.R. Cumming, a wealthy Rhodesian landowner, businessman and colleague of Cecil Rhodes. Cumming had helped raise Ethnee during her childhood on his estate outside Gweru. As an adult and while living in Rhodesia and South Africa, Ethnee had also established and sold both a riding school and a game lodge in Chobe, and eventually sold several properties that she owned as investments giving the funds to Robert to manage on her migration to Australia in 1967.[8]

After acquiring WA Wool, Holmes à Court made it more competitive by reducing production costs, mainly by installing the latest wool milling and weaving machinery. This was acquired on favourable terms from a leading Belgian equipment manufacturer, which was keen to enter the Australian market at that time. He now controlled a company listed on the

Australian Stock Exchange, and from there he began to gain control of a string of small businesses, including Westate Electrical Industries
.

The Bell Group

The Bell Group Ltd
Company typePublic company
Parent
Bond Corporation (1988–1991)

In 1973, Holmes à Court's AWM acquired Bell Brothers, a well-known West Australian transport and contracting group, for $9.6 million, through a reverse takeover. Bell Brothers would ultimately become his flagship company as The Bell Group Ltd.

Bell Group acquired media interests including the Albany Advertiser, the Katanning weekly, the Great Southern Herald, the Collie Mail and radio station 6VA. It also made unsuccessful bids for companies such as Griffin Coal, Greenbushes Tin and Emu Wines. These bids, while unsuccessful, earned significant profits mainly by aggressive defences from owners resulting in inflated share prices held by the bidder.

In 1977, Holmes à Court's brother Simon disappeared in mysterious circumstances in Africa.[9] His abandoned car was found more than 1,000 km from his home and where he was last seen in Botswana. Author Geoff Elliott wrote a book about the disappearance.[10]

During 1979, Bell Group made an unsuccessful bid for Ansett Transport Industries but was defeated by Rupert Murdoch and roadfreight group TNT. However, a profit of $11 million was made by Bell for future bids.

Bell Group made an unsuccessful bid for

Herald & Weekly Times group which owned The West Australian
. By the end of 1980, Bell Group had accumulated cash reserves of $100 million.

In 1981, it made a bid for Elders Goldsbrough Mort for $120 million bid and failed, but earned a profit of $16.5 million on the deal.

During 1982, Bell Group took stakes in Rolls-Royce and Portland cement and made an unsuccessful bid for The Herald and Weekly Times group. Later that year it acquired Perth television station TVW-7.

Bell Group subsequently acquired a television station in Adelaide and a few small regional radio stations.

Unsuccessful bids were made for

Elders IXL
but, as usual, Holmes à Court's strategic corporate planning let him walk away with a profit.

Bell Group acted as a "white knight" in defeating a £1.9 billion hostile bid from Lloyds Bank for its competitor Standard Chartered Bank.

As a result of boardroom coup during 1982 it acquired

Associated Communications Corporation
(ACC), [1]
ATV Music Publishing was bought by Michael Jackson, and as part of the deal, Holmes à Court persuaded Jackson to make a brief visit to Perth, to appear on Channel 7's annual Telethon.[12][13]

In 1987, Bell Group purchased a stake in Pioneer Concrete and made a second unsuccessful bid for the Herald & Weekly Times group. The bid went to takeover competitor Rupert Murdoch for $1.8 billion. Bell Group took ownership of The West Australian, Perth's main daily newspaper.

Australian Consolidated Investments

Australian Consolidated Investments Pty Ltd
FormerlyWigmores Limited (1938–1984)
Bell Resources (1984–1990)
Company typePrivate
AUC (before delisted in 1999)
IndustryMining
FoundedAugust 23, 1938 (1938-08-23)
Defunct2002 (2002)
FateDefunct
Bankruptcy

Australian Consolidated Investments, was previously known as Bell Resources between 1984 and 1990 and prior to that the company was known as Wigmores between 1938 and 1984.

In 1983, Bell Group bought Perth mining equipment company Wigmores, and was renamed Bell Resources Ltd.[note 1] Through the ACC group, BRL gained control of Bass Strait oil and gas explorer, Weeks Petroleum which owned a 2.5% royalty share in the Esso-BHP consortium.

In 1985, BRL acquired 13% of U.S. mining company

Elders IXL took a 20% stake in BHP, for $2 billion. In turn, BHP purchased $1 billion of Elders preference shares. The deal later resulted in action against Elders executives, including chairman John Elliott by the corporate regulator. BRL also spent US$800 million, to acquire 9.6% of Texaco
stock.

Black Monday

By the time of the

Merrill Lynch
withdrew its $1 billion line of credit facility, meaning that the parent couldn't acquire its subsidiary and thereby access the money.

Takeover by Bond Corporation and SGIC

Holmes à Court initially disposed of some Perth properties before accepting a joint takeover by Bond Corporation and the

Alan Bond
to jail), transfer of ownership of newspaper holdings into Bond Media and disposal of certain assets including TVW-7.

During 1988, Holmes à Court concentrated on the rebuilding and expansion of his

Heytesbury subsidiaries acquiring Stoll Moss Theatres in London, Sherwin Pastoral Co (owner of vast cattle stations in Northern Australia), and the Vasse Felix
winery in Margaret River.

In 1989,

Wilson & Horton
.

During 1990, Bell Resources was renamed Australian Consolidated Investments Limited.[14] Also Bond Corporation announced a record $980m loss and Elders IXL followed with an announcement of a $1.3 billion loss. Bond Corporation entered a scheme of arrangement in 1991, with receivers taking charge of the Bell Group. In 2002, Australian Consolidated Investments was delisted from the ASX.[15][16]

Death

A heavy smoker who suffered from diabetes, Holmes à Court died of heart failure in bed on the morning of 2 September 1990.

Heytesbury from the time of her husband's death until 2005, when she retired. She was, at one time, Australia's richest woman. The couple's eldest son, Peter Holmes à Court, is now a major investor and entrepreneur in his own right, after divesting himself of his share of Heytesbury, reported as A$35 million.[18] Peter Holmes à Court, along with Russell Crowe, is the 75.8% owner of National Rugby League club South Sydney Rabbitohs. Another son, Paul Holmes à Court, has since taken over as chief executive. Robert Holmes à Court's other children are Simon, who is an academic concerned with the environment and climate[19] and founder of climate fund Climate 200, and Catherine (married, with four children). Holmes à Court's mother Ethnee died at the age of 98 in May 2014.[20]

Robert and Janet Holmes à Court had 12 grandchildren by 2005, according to an interview with her.[21]

Notes

  1. ^ The company Australian Consolidated Investments Pty Limited (Formerly known as Bell Resources Ltd and Wigmores Ltd) (ABN 23 008 670 924) described in this article has not traded under the name Bell Resources for almost 30 years and should not be confused with Bell Resources Limited (ABN 44 620 586 334).

References

  1. ^ a b McIlwraith, John (2007). "Michael Robert Holmes à Court (1937–1990)".
    ISSN 1833-7538
    . Retrieved 25 December 2010.
  2. ^ WuDunn, Sheryl (3 September 1990). "Robert Holmes a Court, 53, Dies; Australian Built Business Empire". The New York Times. Retrieved 31 December 2013.
  3. ^ "Holmes a Court Left No Will". The New York Times. Reuters. 4 January 1991. Retrieved 31 December 2013.
  4. ^ "Robert Holmes à Court". Robert Holmes à Court | Australian entrepreneur | Britannica. Encyclopædia Britannica. Retrieved 31 December 2013.
  5. ^ Mosley, Charles, ed. (2003). Burke's Peerage, Baronetage & Knightage in 3 volumes (107th ed.). Wilmington, Delaware, U.S.A.: Burke's Peerage (Genealogical Books) Ltd. cited in "Person Page 43942". The Peerage. 12 March 2012. Retrieved 31 December 2013.
  6. Kristof, Nicholas D. (18 May 1987). "International Report – Australia's Richest Strategist"
    . The New York Times. Retrieved 31 December 2013.
  7. LCCN 00340810
    .
  8. ISBN 978-0-7329-0930-7
  9. ^ Bowden, Tracy. "Story of the other Holmes a Court brother". Australian Broadcasting Corporation – 7:30 Report. Retrieved 28 October 2006.
  10. ISBN 1-74114-324-1
    .
  11. ^ "Lord Grade of Elstree, showman, died on December 13th, aged 91". The Economist. 17 December 1998. Retrieved 31 December 2013. ... he felt betrayed when in 1982 he lost control of Associated Communications Corporation, the parent company of his television and other interests, to Robert Holmes à Court, an Australian. Lord Grade had felt so close to the Australian that he allowed him to buy 51% of the voting shares. Holmes à Court then deposed him in a boardroom coup and purged the company of all his staff, even, Lord Grade noted sadly, his tea lady. Later, he observed waspishly, "Robert died quite a young man, for all his millions."
  12. ^ "Michael Jackson's visit to Perth (Australia) in 1985 for Channel 7's Telethon" (Youtube video). 25 June 2009 news report.[dead YouTube link]
  13. WAToday
    . Retrieved 31 December 2013.
  14. ^ "Bell Resources Limited | deListed Australia".
  15. ^ "Australian Consolidated Investments Pty Limited :: Australia :: OpenCorporates".
  16. ^ Asic.gov.au Company Register, Australian Consolidated Investments Pty Limited, ABN 23 008 670 924, Document No.018320577 Notification Of Resolution Converting to a Proprietary Company (205B)lodged on 23 September 2002 & Document No.018320578 Application For Change Of Company Status Conversion Of Company From Public To Pty (206B)lodged on 23 September 2002
  17. ^ The Australian: Peter Holmes à Court retraces the life of his enigmatic dad
  18. ^ "Company Keen To Beef Up Industry". The Canberra Times (canberratimes.com.au). 22 May 2002. Archived from the original on 13 October 2009. Retrieved 26 May 2010.
  19. ^ "Simon Holmes à Court". The Guardian. Retrieved 13 October 2021.
  20. ^ Perth Now: Tributes to Ethnee Holmes a Court following her death aged 98
  21. ^ Lewis, Peter (4 September 2005). "Producers await outcome of Pigeon Hole project". Australian Broadcasting Corporation. Retrieved 28 December 2018. I think it's pretty fundamental. We want to be in this industry in 100 years' time. We've been in it only for 20 years. We have lots of people who work for us who have been here 40, nearly 50 years. But I've got 12 grandchildren and I hope I would like to think that they are visiting these places and their offspring are visiting them way into the future, and if that's going to be the case, then we have to operate these places and manage them sustainably.

Further reading

Retrieved from "https://en.wikipedia.org/w/index.php?title=Robert_Holmes_à_Court&oldid=1209657599"