“Stop the JBS Group taking over Huon”: Mining magnate’s plea to federal government

Andrew “Twiggy” Forrest is pleading with the Federal government to step in and prevent the sale of Huon Aquaculture to JBS.

Mining magnate Andrew “Twiggy” Forrest has called on the federal government to intervene and stop the sale of Huon Aquaculture to Brazilian meatpacker, JBS.

Dr Forrest bought a 7.33 per cent stake in Huon Aquaculture in June this year through his family’s private investment company, Tattarang.

Dr Forrest said he was concerned about animal welfare.

“JBS Group’s appalling track record on the treatment of animals is well and truly on the public record,” Dr Forrest said.

“Australians do not stand for animal cruelty and I stand with Australians.

“That is why the Australian Government must intervene to stop the JBS Group taking over Huon.”

Huon Aquaculture predator proof fish pens at Hideaway bay.

Dr Forrest said Tattarang not to match the JBS offer for Huon Aquaculture due to “serious environmental concerns”.

“Tattarang had factored into its offer price several key environmental improvements that it strongly believes are absolutely necessary for sustainable and responsible salmon production,” he said.

“Tattarang wanted to remove the pens from Macquarie Harbour where they are environmentally destructive, and have caused deep upset to the local community.

“Our offer was predicated on fixing the environment, focusing on production in deep water high current environments, or on land.”

Dr Forrest said Tattarang would continue pressure to move the pens.

“We will continue the battle, and challenge JBS Group to adopt the same environmental strategy,” Dr Forrest said.

‘We will not be distracted’: Twiggy’s salmon campaign slammed

Huon Aquaculture says “we will not be distracted by external noise”, hitting back at mining magnate Andrew Forrest’s attacks on the company’s environmental standards and its likely future purchaser JBS.

This follows the announcement made on August 6 that Huon had entered into definitive agreements with JBS to acquire 100 per cent of Huon shares for $3.85 cash per share, and Dr Forrest publicly challenged JBS through newspaper articles and a full page advertisement in The Mercury to prove they can meet a list of what he deems essential commitments.

In a statement released on Monday, Huon’s chairman Neil Kearney told stakeholders the company was focused on securing “proper value” for Huon shares and they maintained that both the company and JBS were committed to animal welfare and sustainability.

Andrew Forrest. Picture - Justin Benson-Cooper / The West Australian

“Your directors consider that the $3.85 cash price (for shares) offers compelling value as it represents a 61 per cent premium to the undisturbed closing price on 26 February 2021, when the strategic review to consider corporate level transactions was announced,” Mr Kearney said.

“It is important to note that the JBS proposal is the culmination of a rigorous strategic review process that was designed to identify the most compelling value proposition for all Huon shareholders,” Mr Kearney said.

“In the early phase of the review process, Tattarang expressed interest in Huon and submitted a non-binding and conditional indicative offer for the business.

“Tattarang was invited to participate further in the strategic review process (on the same customary terms as other process participants) and submit a final and binding offer but declined to do so.

“In any event, JBS’s $3.85 cash per share offer is materially higher than Tattarang’s non-binding and conditional indicative offer.”

Mr Kearney said that over Huon’s 35 years of operations the company has been uncompromising in its commitment to the highest standards of animal husbandry, biosecurity, environmental management, and sustainable farming practices.

“Huon

remains the only seafood producer in Australia to achieve RSPCA Approved Farming certification and firmly believes its sustainable salmon farming practices can be benchmarked against the best standards in the world,” he said.

“In the event of a transaction proceeding, a new owner of Huon would be required to adhere to the same rigorous environmental and animal welfare standards that apply today.”

“In its commitments to animal welfare and sustainability, JBS has pledged to build on the legacy we have built at Huon. Please see the enclosed statement released by JBS.”

In the next four weeks Huon directors will finalise a comprehensive shareholder booklet which will include a report from an independent expert for consideration prior to shareholder voting on the JBS proposal.

“Any proposal that Huon receives from third parties before then would be considered on its merits from a shareholder value perspective,” Mr Kearney said.