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Fortescue Metals Group (FMG) has been trading up nearly a per cent today despite the news that founder Dr Andrew Forrest and his wife, Nicola, have separated after 31 years of marriage.
FMG reported a “private statement” by the Forrests to the market this morning, which said there would be no change to the control or direction of the company.
It said Dr Forrest would remain Executive Chair of Fortescue, and the Chair of Tattarang and the Minderoo Foundation.
“There will be no change to control, direction or major shareholding owned by Tattarang and Dr Forrest’s associated entities, except for what has been previously advised, that Dr Andrew Forrest and Nicola Forrest will be transferring their wealth to charity over their lifetimes,” the statement read.
Tattarang and Minderoo are both associated entities through which the Forrests have pursued philanthropic pursuits.
Tattarang itself holds a 29.84 per cent majority shareholding in Fortescue Metals. The second largest shareholder is HSBC Custody Nominees at 19.5 per cent. JP Morgan Nominees holds 12.75 per cent in third place.
On June 20, a change of interest of substantial holder notice was lodged with the ASX revealing 50 million shares were transferred to an entity called Coaxial, directed by Nicola Forrest and their three children.
That same document revealed both Andrew Forrest and Nicola each held a voting power of more than 20 per cent in Tattarang.
Both parties retain a voting interest of more than 20 per cent in the Forrest Family Foundation (FFF), one of many entities within Forrest’s financial ecosystem.
Those 50 million shares reflect a value of around $1 billion.
Time will tell if the split impacts a range of businesses in the Forrest fold or backed by Tattarang, including hydrogen-focused Fortescue Future Industries, Harvey Beef, RM Williams, Perth Carillon City shopping arcade, Camilla Australia and a renewable energy developer, Squadron Energy.
The Market Herald has contacted FMG, inviting further clarification around what the decision will mean for the Forrests’ company interests.
