Robert Holmes à Court
Michael Robert Hamilton Holmes à Court entered the world on the 27th of July 1937 in Johannesburg, South Africa. His family lineage traced back to William à Court-Holmes, the 2nd Baron Heytesbury. He spent his early years moving between Southern Rhodesia and South Africa. School days at Cordwalles Preparatory School involved selling photographs of classmates for cash. He also drove students home to collect their travel allowances as extra income. This entrepreneurial spirit appeared before he ever touched a corporate boardroom.
His entry into business occurred by accident in 1970 when his law firm acted as administrative receiver for Western Australian Worsted & Woollen Mills. The company was the largest employer in Albany, a regional city. Holmes à Court invested $500,000 into the struggling textile mill. He secured government forgiveness of loans from the Minister for Industry Charles Court. Sources suggest his mother Ethnee provided the initial funds through her inheritance from H.R. Cumming. He installed new Belgian machinery to reduce production costs and make the business competitive. By 1973, his group acquired Bell Brothers for $9.6 million through a reverse takeover. That entity became known as The Bell Group Limited.
Aggressive acquisition tactics defined his career throughout the 1980s. Unsuccessful bids often generated significant profits due to inflated share prices. In 1979, an attempt to buy Ansett Transport Industries failed but earned Bell Group $11 million. A bid for Elders Goldsbrough Mort in 1981 resulted in a $16.5 million profit despite failing to acquire the company. He purchased ATV Music which held The Beatles publishing rights. Later that year he acquired TVW Enterprises and SAS 10 radio stations. These moves accumulated cash reserves reaching $100 million by the end of 1980. Shareholders enjoyed enormous investment growth during this period.
The group expanded into media, oil exploration, and mining interests during the 1980s. Bell Resources gained control of Weeks Petroleum with its 2.5% royalty share in the Esso-BHP consortium. In 1985, BRL spent US$800 million to acquire 9.6% of Texaco stock. They also bought 13% of Asarco for $140 million. The group owned The West Australian newspaper after taking ownership from Rupert Murdoch's competitor. Holmes à Court purchased Stoll Moss Theatres in London and Sherwin Pastoral Co cattle stations. He also acquired Vasse Felix winery in Margaret River. His horse Black Knight won the 1984 Melbourne Cup race.
Black Monday struck in October 1987 when international stock markets crashed. Bell Group assets were valuable but could not generate enough revenue to cover debts. Merrill Lynch withdrew a $1 billion line of credit facility. Kerry Packer and John Spalvins made share raids on Bell Resources. Bond Corporation and State Government Insurance Commission took over with 19.9% stakes each. Bond Corp ended up holding 68% majority shareholding. They stripped $500 million from Bell Resources to prop up their own debts. This included transferring cash and selling TVW-7. Alan Bond eventually went to jail due to these actions breaching company codes.
A heavy smoker suffering from diabetes died of heart failure on the 2nd of September 1990 at age 53. He died intestate leaving his estate divided among family members. One-third went to widow Janet while the remainder split equally between four children. Peter, Paul, Simon, and Catherine inherited shares in Heytesbury Holdings. Janet managed the company until her retirement in 2005. She became Australia's richest woman during that period. Peter Holmes à Court later became a major investor owning part of South Sydney Rabbitohs. Paul took over as chief executive of the family business. His mother Ethnee lived to be 98 years old before dying in May 2014.
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Common questions
When and where was Robert Holmes à Court born?
Michael Robert Hamilton Holmes à Court entered the world on the 27th of July 1937 in Johannesburg, South Africa. His family lineage traced back to William à Court-Holmes, the 2nd Baron Heytesbury.
How did Robert Holmes à Court start his business career?
His entry into business occurred by accident in 1970 when his law firm acted as administrative receiver for Western Australian Worsted & Woollen Mills. He invested $500,000 into the struggling textile mill and secured government forgiveness of loans from the Minister for Industry Charles Court.
What were the aggressive acquisition tactics used by Bell Group during the 1980s?
Unsuccessful bids often generated significant profits due to inflated share prices. In 1979 an attempt to buy Ansett Transport Industries failed but earned Bell Group $11 million while a bid for Elders Goldsbrough Mort in 1981 resulted in a $16.5 million profit despite failing to acquire the company.
Why did the Bell Group collapse after Black Monday in October 1987?
Bell Group assets were valuable but could not generate enough revenue to cover debts. Merrill Lynch withdrew a $1 billion line of credit facility and Bond Corporation ended up holding 68% majority shareholding after stripping $500 million from Bell Resources to prop up their own debts.
When did Robert Holmes à Court die and how was his estate divided?
A heavy smoker suffering from diabetes died of heart failure on the 2nd of September 1990 at age 53. He died intestate leaving his estate divided among family members with one-third going to widow Janet while the remainder split equally between four children.