Article in AFR today. Based on this, I would have expected the...

Article in AFR today. Based on this, I would have expected the price to drop lower than what it has.
Billionaire Andrew Forrest has emerged as the kingmaker in the $550 million takeover of Tasmanian salmon farming group Huon Aquaculture by Brazilian meat giant JBS, building an 18.5 per cent stake big enough to block the deal and writing to both JBS and Huon demanding they commit to higher farming and environmental standards.Andrew Forrest’s Tattarang could decide the fate of the takeover of Huon. Lee GriffithWhile Dr Forrest is best known as chairman of iron ore giant Fortescue Metals, he has extensive agricultural interests through his private company Tattarang, and has a PhD in marine biology.He told The Australian Financial Review on Wednesday that Tattarang’s initial investment in Huon, made in June, was designed to help drive better environmental standards at the company.Dr Forrest says the use of fish meal in the salmon farming industry was not only very expensive but also environmentally damaging.“When we invested in Huon it wasn’t to see if we could make a turn or a cheap investment, it was to see if we could turn salmon farming away from its current very poor reputation which in many cases is deserved and in some cases is not.RELATED QUOTESHUOHuon Aquaculture Group$3.830 -1.54%1 year1 dayAug 20Feb 21Aug 212.2503.1504.050Updated: Aug 11, 2021 – 11.34am. Data is 20 mins delayed.View HUO related articles Advertisement“We, with a group of scientists and agriculturalists, set out to formulate a plan which could...set the bar for the salmon farming industry in Australia and in the world to become environmentally neutral, environmentally sustainable.”But JBS swooped on Huon last week with a $3.85-a-share deal to buy the company. The takeover has the support of Huon’s founders and major shareholders, Frances and Peter Bender, who plan to vote their 53 per cent stake in favour of the transaction.But in what can only be described as an example of impact investing on steroids, Dr Forrest wants Huon and JBS to commit to improved environmental and animal husbandry standards, both in salmon farming but also in JBS’s extensive meat farming operations.Specifically, JBS should adopt what is known in the cattle industry as a “no pain, no fear” policy for the humane killing of animals for meat.“We have written to JBS and Huon that we certainly will not stand in the road of them acquiring Huon, provided that they adopt a very firm arrangement that they will go ‘no pain no fear’ throughout their livestock processing and adopt the measures which Tattarang had planned to remove the environmental liabilities from the community of Tasmania,” Dr Forrest told the Financial Review.He declined to comment on whether Tattarang would block the deal if his conditions were not met.“We are a vitally interested investor,” Dr Forrest said. “But so is the rest of the country. The nation deserves to know that JBS animal husbandry practices are.”Dr Forrest said the scheme implementation deed for the Huon deal was silent on key environmental matters.“A careful reading of their 130-plus page document does not mention the environment and animal husbandry once. I think that is a very serious omission for a company which makes its bread and butter off the environment and in animal husbandry.”Asked whether he thinks JBS will consider his request, Dr Forrest said he believes the Brazilian group, which has a market value of $21 billion, has little choice if it wants to become a true global giant.“If they want to become an absolutely huge company, then adopting no pain no fear principles, and being seen as a champion of human rights throughout their direct and indirect workforce, being seen as a champion of the environment...and in particular demonstrating that animal protein to the world can be delivered to your plate without the animal suffering is critical to their price earnings ratio and their market capitalisation.”Comment is being sought from JBS on the Tattarang move. But Dr Forrest said his private company’s approach to impact investing would not change.“This has been a model for Tattarang for some time, it’s just that this time it’s very clear,” he said. “This has been and this is who we are.”