Huon Aquaculture: Twiggy Forrest calls for sustainability commitment

JBS Australia’s purchase of Huon Aquaculture was recently approved by shareholders, including Twiggy Forrest’s Tattarang. But the deal hung on one key factor.

Huon Aquaculture is set to be purchased by Brazilian-based company JBS.

Private investment group Tattarang voted in favour of JBS Australia’s proposed purchase of Huon Aquaculture last week.

But the company’s vote only came after the Brazilian-owned company pledged to commit to environmental sustainability and animal welfare practices.

More than 75 per cent of votes cast were in favour of the proposal to purchase the company via a scheme of arrangement for $549.87m.

Last week, Tattarang chief executive Andrew Forrest called on the global parent of JBS Australia, JBS S.A, to declare a commitment to animal welfare and environmental sustainability.

Brazilian-based agricultural company JBS announced a number of proposed acquisitions into the pork and aquaculture industries earlier this year.

But plans to acquire Huon Aquaculture were met with questions from the supply chain, with private investment group Tattarang increasing its “substantial” shareholding in Huon Aquaculture Group in August.

In the days prior to last week’s shareholder vote, Dr Forrest said until JBS made a commitment to animal welfare and sustainability, it was Tattarang’s intention to vote against both schemes of arrangement.

“Until JBS S.A declares its unequivocal commitment to adopt the same animal welfare – including the principle of No Pain, No Fear – and environmental sustainability standards as JBS Australia across their global operations, Huon shareholders have no certainty for the future of the company under JBS Group’s control,” Dr Forrest said.

Tattarang voted in favour of the schemes of arrangement after securing commitment from JBS S.A.

JBS Australia chief executive Brent Eastwood said the company was pleased with the outcome of the purchase proposal, “and appreciates the overwhelmingly positive shareholder response to our offer”.

“Acquiring Huon represents our first step into the aquaculture industry for JBS globally. We believe that our contacts and our ability to open up and access new markets, combined with the expert team at Huon, create a fantastic opportunity to take this business forward,” Mr Eastwood said.

“We will uphold the highest standards for superior quality, fish health and sustainable farming practices – from water management to animal welfare, and stock densities.”

Mr Eastwood said JBS will meet with Huon employees and Tasmanian environmental and government stakeholders in coming weeks.

The scheme remains subject to court approval today.