JBS has responded to a move by Tattarang Agrifood Chairman Andrew Forrest to buy up shares of Huon Aquaculture with a fresh offer to shareholders.
Earlier this month, the São Paulo, Brazil-based meat-processing conglomerate moved to acquire Huon, a Tasmania, Australia-based salmon-farming firm, with an offer of AUD 425 million (USD 313.5 million, EUR 266.1 million) in cash, or AUD 3.85 (USD 2.84, EUR 2.41) per share of the company, On 10 August, Tattarang Agrifood upped its ownership of Huon shares to the equivalent of 18.59 percent of the company, and the billionaire investor said in a statement he was seeking to extract promises from JBS setting higher environmental standards in exchange for his cooperation on its takeover bid.
On Friday, 13 August, Huon Aquaculture announced JBS is making a parallel bid for control of the company, seeking a 50.1 percent minimum acceptance condition. The move is likely to succeed given Huon owners Peter and Frances Bender together control 53 percent of Huon’s issued shares. The bid comes with additional language not part in its original offer that aims to address Forrest’s concerns.
“Huon has been and continues to be uncompromising in its commitment to the highest standards of animal husbandry, biosecurity, environmental management, and sustainable farming practices. JBS has also confirmed its commitment to ensuring the well-being of animals under its care and to upholding and building on Huon’s legacy of high standards for superior quality, fish health, welfare, and sustainable farming practices under its ownership. JBS has notified Huon that it intends to provide further detail regarding its application of best practice standards in animal welfare and environmental sustainability for inclusion in the scheme booklet,” it said.
The scheme booklet, which will contain more detail information regarding the proposed transaction, is set to be delivered to Huon shareholders in late September 2021. The booklet will also contain a report written by an independent expert investigating whether the two JBS offers “are in the best interest of Huon shareholders and whether the offer is fair and reasonable or not fair but reasonable.”
The timeline means the transaction will likely not be finalized until October 2021 at the earliest.
Similar to its previous proposition, JBS’ parallel bid offers Huon shareholders AUD 3.85 (USD 2.84, EUR 2.41) per share. Huon’s stock price closed at AUD 3.68 (USD 2.71, EUR 2.30) on Friday, 13 August.
In JBS updated bid, it was disclosed that Frances and Peter Bender have entered into a pre-bid acceptance agreement over 19.9 percent of the company’s shares as a means of shoring up support for the takeover attempt, which is backed by the company’s entire board of directors, barring any superior offer made in advance of the finalization of the agreement.
Photo courtesy of Huon Aquaculture
