Sale of Huon on cusp
BRAZILIAN meat giant JBS is set to take control of controversial Tasmanian salmon company Huon Aquaculture on Friday.
The takeover bid on Monday overcame its biggest hurdle – approval from the Foreign Investment Review Board, which advises Federal Treasurer Josh Frydenberg on foreign takeovers of Australian assets.
FIRB confirmed it did not object to the $500m acquisition, a sale that will deliver an expected personal windfall to founders Frances and Peter Bender of more than $200m.
Shareholders will vote on the buy-up at the agreed rate of $3.85 a share this Friday.
Environmentalists and the likes of Western Australian mining magnate Andrew “Twiggy” Forrest have denounced the sale, criticising JBS’s environmental record.
“This is truly bleak news for Tasmania,” Neighbours of Fish Farms president Peter George said.
“All Tasmanians should be deeply concerned that a multinational with a global reputation for corruption is taking over Tasmania’s second biggest salmon producer.
“JBS has a track record for animal cruelty and environmental destruction.”
Shadforth Financial Group advisor Sam Baker said Mr Forrest would be forced to give up his 18.5 per cent stake in the company if a 75 per cent approval threshold was met by shareholders this week.
If that threshold isn’t met, JBS will still take effective control of the company, but Mr Forrest would be able to remain a minority shareholder without voting power.
“It is possible for him to potentially hold onto his share in Huon but the reality is JBS will take control of Huon Aquaculture,” he said.
“The only other thing is if Andrew Forrest tries to make a spirited takeover. I think that’s very unlikely at this point. The most significant hurdle for the takeover was the Foreign Investment Review Board approval. That hurdle has now been cleared and it paves the way for the takeover to proceed on Friday.”
Mr Forrest had increased his company Tattarang’s holding from 4 per cent to 18.5 per cent, promising to keep an eye on Huon’s environmental behaviour under JBS.
Huon Aquaculture said the Benders, who own 52 per cent of the company and will vote in favour of the takeover, “strongly supported” the sale.
The company has also praised JBS.
“In addition to a commitment to invest in the business and our 800-strong team, JBS has committed to maintaining our world-leading farming practices to support long-term sustainable growth,” a Huon Aquaculture spokesperson said.
“Huon has established the highest standards of animal husbandry, biosecurity, environmental management, and sustainable farming practices and JBS will continue this uncompromising approach. Importantly, JBS also has the proven skills and expertise to access new international markets for our premium Tasmanian salmon.”