Huon (ASX:HUO) share price wobbles as Twiggy ups crusade against JBS

Andrew ‘Twiggy’ Forrest has thrown more punches at JBS’ bid to take over Huon Aquaculture.

| More on:
A family fight over a plate of salmon at dinner time.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Huon Aquaculture Group Ltd (ASX: HUO) share price is wobbling amid reports one of its top shareholders is continuing their campaign against JBS takeover bid on animal cruelty grounds.

The Huon share price has been in and out of the green all day. Right now, shares in the salmon producer are trading for $3.83 apiece, 0.5% lower than their previous closing price.

Andrew ‘Twiggy’ Forrest, Fortescue Metals’ CEO and chair of Tattarang, which holds an 18.5% stake in Huon, upped his crusade against the takeover by placing a full-page ad in today’s Australian Financial Review (AFR).

The ad is headlined: It’s time to commit. It challenges JBS – the world’s largest meat processor – to improve its animal welfare standards and implement a ‘no pain no fear’ framework during the slaughtering of animals.  

Additionally, the Sydney Morning Herald today reported Forrest has called on Australia’s Foreign Investment Review Board to examine the takeover. Forrest reportedly alleges JBS has previously engaged in corrupt activities and animal cruelty.

In 2020, the Animal Welfare Institute found JBS committed more animal welfare violations than any other US-based meat producer.

JBS states it has implemented management structures to oversee the humane handling and management of animals. The company’s handling of animals is also remotely monitored and audited by a third party.

Let’s take a closer look at the news moving the Huon share price today.

Quick refresher

Forrest’s campaign against JBS’ takeover of Huon is a few weeks old and follows JBS’ original takeover bid, which saw the Huon share price gain 39%.

On 11 August, Forrest announced Tattarang had more than doubled its stake in Huon in an attempt to block the takeover and improve Huon’s own animal welfare and sustainability practices. At the time, Tattarang’s holding could have been the deciding vote in the takeover bid.

However, JBS posed an updated takeover bid last week. The new bid only required the approval of 50.01% of Huon’s shareholders to go ahead. Huon’s directors, who together represent 53% of Huon’s voting power, have already pledged to vote in favour of the takeover.

Seemingly in response, Forrest has doubled down in his fight against JBS’ bid.

Today’s news

The Huon share price is wobbling amid Forrest’s intensifying campaign against JBS’ takeover bid.

According to Forrest, JBS’ current animal welfare and environmental impact standards are lacking. Until the company commits to improving those standards, he will vote against the takeover.

In a release from Tattarang, Forrest pointed to the firm’s beef processing company, Harvey Beef’s ‘no pain no fear’ focus. The focus allegedly means animals feel no fear or pain when going to slaughter. He said:

As the world’s biggest protein producer, JBS can rise to this same standard…

Stop the talk and show us your actions, your animals deserve better and your customers expect more. I challenge JBS to join me on this journey.

We need to see more than just words from you, we need to see immediate action.

The release echoes the message of Forrest’s full-page advert. Roy Morgan estimates around 162,000 Australians read the AFR each day.

Huon share price snapshot

The Huon share price has been performing well on the ASX lately.

It has gained 44% year to date. It is also 27% higher than this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A view of New York at sunrise looking from inside an aeroplane window.
Consumer Staples & Discretionary Shares

Bubs share price falls despite US FDA update

Bubs shares are sliding on Thursday...

Read more »

A group of friends watch the game at the pub whilst enjoying a few drinks, one girl has her hand up cheering.
Consumer Staples & Discretionary Shares

Players gonna play: 3 ASX shares set for a strong reporting season

There are some consumer activities that don't just disappear because of an economic downturn. Here are some stocks that could…

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Why ‘superior operations’ puts Woolworths shares in this broker’s buy basket

Some brokers are anticipating increased earnings for Woolies.

Read more »

a man inspects a capsicum while holding an eco-friendly green string bag in a supermarket produce aisle.
Consumer Staples & Discretionary Shares

The Woolworths share price outperformed the ASX 200 in FY22. Here’s why

The 12 months ended 30 June 2022 brought many ups and downs for this ASX 200 supermarket operator.

Read more »

woman sitting glumly in the dark with candles
Consumer Staples & Discretionary Shares

Why did the Dusk share price flame out 16% in June?

Dusk shares encountered a difficult month of trading brought on by external market factors.

Read more »

a man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.
Consumer Staples & Discretionary Shares

The Coles share price beat the ASX 200 by over 10% in June

Coles shares were a safe haven during the share market plunge in June.

Read more »

A woman holds her hands to her face in shock and fear with a worried expression on her face as many ASX 200 shares hit 52-week lows today
Capital Raising

Why is the Bubs share price crashing 15% today?

The Bubs share price is crashing on Wednesday. What's happening?

Read more »

Man with rocket wings which have flames coming out of them.
Consumer Staples & Discretionary Shares

Why is the Atomos share price soaring 31% today?

Atomos shares are off to a flying start for the week.

Read more »