Huon Aquaculture Takeover Offer

Dear Huon shareholder,

I am writing to you, as Chairman and as a shareholder in Huon, in light of continued media coverage regarding our business and the salmon industry more widely.

First, I want to update you on the announcement made on 6 August 2021 that Huon had entered into definitive agreements with JBS to acquire 100 per cent of Huon shares for $3.85 cash per share.

Your directors consider that the $3.85 cash price offers compelling value as it represents a 61 per cent premium to the undisturbed closing price on 26 February 2021, when the strategic review to consider corporate level transactions was announced.

Since then, Tattarang Agrifood, a company owned by West Australian mining magnate Andrew Forrest, has acquired an 18.5 per cent stake in Huon and indicated it might not support the JBS proposal. Further, Dr Forrest has questioned aspects of the animal husbandry practices of JBS and environmental standards of Huon and the salmon industry in Tasmania.

It is important to note that the JBS proposal is the culmination of a rigorous strategic review process that was designed to identify the most compelling value proposition for all Huon shareholders. In the early phase of the review process, Tattarang expressed interest in Huon and submitted a non-binding and conditional indicative offer for the business. Tattarang was invited to participate further in the strategic review process (on the same customary terms as other process participants) and submit a final and binding offer but declined to do so. In any event, JBS’s $3.85 cash per share offer is materially higher than Tattarang’s non-binding and conditional indicative offer.

Your directors will continue to act in the interests of Huon shareholders. We are focused on providing our shareholders, particularly retail shareholders, with the opportunity to secure proper value for all their Huon shares. We will not be distracted by external noise that does not provide Huon shareholders with that opportunity.

As a shareholder you would be aware that at all times during our 35-year history, Huon has been uncompromising in its commitment to the highest standards of animal husbandry, biosecurity, environmental management, and sustainable farming practices. Huon remains the only seafood producer in Australia to achieve RSPCA Approved Farming certification and firmly believes its sustainable salmon farming practices can be benchmarked against the best standards in the world.

In the event of a transaction proceeding, a new owner of Huon would be required to adhere to the same rigorous environmental and animal welfare standards that apply today.