Who is Andrew ‘Twiggy’ Forrest, the mining magnate with a stake in Huon Aquaculture?
A 59-year-old West Australian billionaire could determine the future of Tasmania’s salmon industry. So just who is mining magnate Andrew ‘Twiggy’ Forrest? SPECIAL READ >>
Hobart & South
Don't miss out on the headlines from Hobart & South. Followed categories will be added to My News.
- Twiggy’s salmon farm welfare claims ‘unfounded’: Bender
- AFL call made as Gutwein reveals ‘4-point Delta shield’
How did one of the richest men in the country become embroiled in a furious debate over the future of Tasmania’s aquaculture industry?
Andrew ‘Twiggy’ Forrest, the founder and chairman of one of the world’s biggest iron ore suppliers, Fortescue Metals Group, has an estimated net worth of $27.25 billion and is among Australia’s most prolific philanthropists.
A former stockbroker, he started his first mining company, Anaconda Nickel, in 1994, but was ousted as chief executive in 2001 as the share price flagged and fears grew that his Murrin Murrin project on the edge of the Great Victoria Desert had become a white elephant.
That same year, Dr Forrest and his wife, Nicola Forrest, founded the philanthropic Minderoo Foundation, named after the cattle station in the Pilbara where Dr Forrest grew up.
The Minderoo Foundation has a wide range of initiatives, including Thrive by Five, which advocates for a higher quality early learning system, and Walk Free, a human rights organisation working to end modern slavery.
The federal government appointed Dr Forrest to lead a review of indigenous employment and training programs in 2013. The review controversially recommended the creation of the cashless welfare card.
In June this year, the 59-year-old bought a 7.33 per cent stake in Huon Aquaculture through his family’s private investment company Tattarang.
Earlier this week, Dr Forrest – who is the great-great nephew of WA’s first premier Sir John Forrest – increased his holding to 18.5 per cent, in a move that could threaten meat processing giant JBS’s controversial bid to buy the aquaculture company.
Despite not owning any property in Tasmania, the WA billionaire – who has a PhD in marine ecology – appears to have a keen interest in the state.
He’s passionate about ocean conservation and is a member of the United Nations Environment Programme Scientific Advisory Committee on the Assessment on Marine Litter and Microplastics.
Not only does he have a stake in Huon, but he’s also made it clear that he wants to be part of Tasmania’s green hydrogen push. Fortescue Future Industries, which is Fortescue Metals Group’s renewable energy subsidiary, has entered into an agreement with TasPorts, giving the company the option to lease land at Bell Bay to build a 250-megawatt green hydrogen and green ammonia production plant.
Sometimes criticised for overpromising and underdelivering, Dr Forrest’s next move will be eagerly anticipated.
After all, he could determine the future of the state’s salmon industry.
Call for Twiggy to ‘fix things’
AUSTRALIAN businessman Andrew “Twiggy” Forrest says his aim is not to take over Huon Aquaculture but make any new owner prove it can farm salmon without harming Tasmania’s environment and fish welfare.
Dr Forrest, who now owns 18.5 per cent of Huon, is being painted as a white knight who could take control and transform Tasmania’s fish farming industry.
Environment Tasmania’s Jilly Middleton said her group wanted the mining magnate turned salmon investor to takeover the company, come to Tasmania and “fix it.”
“I want Twiggy to understand the culture here when it comes to government oversight and regulatory frameworks. Good intentions do not go very far,” she told ABC Radio.
“If the JBS takeover cannot be tied to some meaningful directions it will see a worsening of environmental impact and those on fish and other wildlife.”
Dr Forrest’s family company Tattarang increased its stake in Huon Aquaculture this week to 18.5 per cent.
Dr Forrest says he bought into Huon to influence the future of the salmon industry not to spike the $425m takeover deal the salmon farmer’s recently signed with Brazilian meat processor JBS.
Dr Forrest outright rejected a suggestion he had upped his investment in Huon with a goal of takeover in mind.
Instead he is putting pressure on JBS to prove it has the environment and animal welfare credentials to own a salmon farming business in Tasmania.
And he hoped superannuation investors and others would take the same stance.
“I want to shine a big bright light on all animal protein practices. How do we make salmon farming stable in the environment and welcomed in the community,” Dr Forrest said.
Tattarang is now the second-biggest shareholder in Huon behind JBS which now holds a 40.53 per cent stake.
Dr Forrest paid $47m for the extra shares. The buy-up means Tattarang and Australian Super combined now own over 30 per cent of Huon shares and JBS might not be able to obtain the 75 per cent of shareholder votes it needs for the signed takeover deal to go ahead.
The Foreign Investment Review Board would also have oversight over the JBS deal.
“I have flagged what I stand for and that is no, pain, no fear in animal husbandry. I am not a bleeding heart, I am a cattle farmers and own the largest meat processing operation inWestern Australia.
“But I do not see evidence that this is what JBS stands for,” he said.
“Huon are currently going the right way and the best out of the pack. That is why we invested.
“I am saying to JBS, if you want our support this is what we stand for.”
In a statement put out on Wednesday, JBS said its commitment to animals under its care was “uncompromising.”
CEO Brent Eastwood said its proposed takeover would improve upon Huon’s legacy of high standards for superior quality fish, fish health, welfare and sustainable farming practices.
Second attempt on the cards for unsuccessful bidder?
A Canadian aquaculture giant is believed to have lodged an unsuccessful bid to buy Huon Aquaculture – but observers aren’t ruling out a second approach by the company.
It’s understood Cooke Seafood made an offer to Huon but was knocked back in favour of meat processing company JBS, which is seeking to make its first foray into aquaculture in Australia.
Huon founders Peter and Frances Bender, along with the board, have recommended that shareholders of the ASX-listed company vote to approve the sale to JBS at a price of $3.85 a share.
Cooke, meanwhile, is a family of companies with 10,000 employees across the globe and operations in nine countries. It produces farm-raised and wild-caught salmon, scallops, oysters, shrimp, crab, and more.
According to its website, Cooke has aggressively pursued growth opportunities in recent years.
Tasmanian Alliance for Marine Protection (TAMP) co-chair Peter George described JBS as the “worst possible outcome” for Huon and said Cooke was “a nicer looking version of JBS”.
“On the other hand, it is still committed to sea-based operations, which are essentially coastal, or close to coastal,” he said.
“My feelings are that Cooke would be an improvement on JBS, but I think it’s quite fair to say that TAMP and all the organisations we represent have a kind of bottom line – there’s got to be a commitment to get out of the ocean.”
Shadforth Financial Group private wealth adviser Sam Baker said if another interested party were to make an approach to Huon “at a share price premium”, the board would assess the offer on its merits.
“If Cooke Seafood or another party were to come and make a superior offer, the board and the major shareholders would need to review that and potentially make a recommendation to the remaining shareholders,” he said. “That would include Andrew Forrest as an 18.5 per cent shareholder.”
”But there would be no transaction … with Huon in its current form without the support of Peter and Frances Bender.”
Mr Baker said if there didn’t appear to be shareholder support for the JBS deal, a company like Cooke may only need to make a “comparable” offer to JBS’s, rather than a superior one.
The Benders own a controlling share of Huon (52 per cent), while mining magnate Andrew ‘Twiggy’ Forrest is now the second biggest shareholder, with his company Tattarang increasing its holding from 7 per cent to 18.51 per cent this week.
Dr Forrest said he had a vision for a Tasmanian aquaculture industry founded on offshore and land-based farming and that he had reservations about JBS.
Greens leader Cassy O’Connor said if Huon was sold to “any multinational”, there would “almost certainly” be less transparency around its operations and “even less regard for Tasmania’s unique waterways”.
Council tried to sting developer with $900k condition
A Southern Tasmanian council tried to make it a condition for a developer to pay $900k to approve a major subdivision project. Here’s why that was considered unreasonable.
Four mayors take aim at abandoned Tasman Bridge plans
The four Greater Hobart mayors have taken aim at the state government’s track record on public transport infrastructure, after one particular project was scrapped. What they said.