What is affecting the salmon producer’s share price?
The post Huon (ASX:HUO) share price slides as Twiggy lays down law on takeover appeared first on The Motley Fool Australia. –
The Huon Aquaculture Group Ltd (ASX: HUO) share price is struggling to take-off today.
Shares in the Tasmanian salmon producer are stuck in the red as uncertainty looms over its pending takeover.
It is understood that billionaire and chairman of Fortescue Metals Group Limited (ASX: FMG) Andrew ‘Twiggy’ Forrest has thrown his hat into the ring.
Let’s take a look at what’s holding back the Huon share price.
Twiggy throws weight behind the Huon share price
The Huon share price saw tremendous interest on Monday.
One entity, in particular, drew the attention of pundits.
Approximately 10 million shares in Huon changed hands on Monday, with 7.8 million shares crossing at $3.85.
Many sources suggested that the buyer of Huon’s shares was Andrew Forrest’s private investment group Tattarang.
In an interview with the AFR, billionaire Andrew Forrest acknowledged that his private company was building a stake in Huon.
Prior to Monday, Tattarang was already Huon’s third biggest shareholder with a 7.33% interest.
By holding an 18.5% stake in the salmon producer, Tattarang could possibly form a blocking bid for JBS’ proposed takeover of Huon.
The iron-ore magnate cited agricultural interests behind the stake.
Mr Forrest has demanded a higher commitment to farming and environmental standards in the scheme implementation deed for the Huon deal.
The billionaire did not outwardly acknowledge whether Tattarang would block the deal if conditions were not met.
Huon has yet to release any commentary on the potential blocking bid.
More on the Huon share price
As noted previously, the Huon share price was in hot demand earlier this week.
Shares in the Tasmanian salmon producer stormed 40% higher after receiving a $546 million takeover offer from Brazilian company JBS.
The meat giant agreed to pay $3.85 per share, reflecting a 38% premium on Huon’s previous share price.
JBS also noted that it intends to include a special fully-franked dividend of 12.5 cents per share as part of the scheme implementation.
Huon’s founders, Frances and Peter Bender hold a 53% stake in the company and are expected to be in favour of the transaction.
At the time of writing, the Huon share price is trading more than 1.5% lower for the day at $3.83.
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Motley Fool contributor Nikhil Gangaram 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.