AUSTRALIA’S second largest aquaculture company, Tasmanian-based Huon, has been taken over by meat and food processing company, JBS Australia.
Shareholders of Huon voted on Friday in favour of the deal.
Shareholder Andrew Forrest originally moved to block the original JBS takeover offer of $3.85 per share; a deal worth more than $450 million.
Dr Forrest doubled his own Huon shareholding to 18.5 percent, threatening to vote against the deal unless JBS committed to higher animal welfare standards across its operations.
“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 in an October 27 statement.
“My message to these massive protein producers remains clear: your animals deserve [‘no pain, no fear’] in their life cycle, and your customers expect you to change the management of your business to accommodate this.”
Dr Forrest eventually backed the bid, which is expected to be approved by the federal court on November 3.
Share prices opened at $3.85 on news of the deal this week.
JBS’s acquisition of Huon is the meat giants first global step into the aquaculture industry.
Huon chairman Neil Kearney said the deal had safeguarded the company’s potential.
"Today’s overwhelming shareholder support for the JBS transaction will secure the future of Huon, the company's dedicated workforce and the hundreds of Tasmanian businesses that work with us,” he said.
“Not only is it a great outcome for shareholders, it’s the right outcome for the business. We are delighted that shareholders have endorsed the proposed transaction and we look forward to working closely with JBS on the ownership transition.”
Huon was reported to have more than $120 million in losses over 2020 to 2021 due to a an almost $80 million impairment charge and lower prices.
In the week before JBS made its first offer, Huon shares traded around $2.75.
After the Foreign Investment Review Board approved the JBS takeover plans last week the price climbed to $3.83 per share.
