Fortescue says Forrests’ split will not affect $69b goliath

The Forrests also stressed, in a shared statement, that their decision to separate would have no impact on the mining business or their charitable foundation, the Minderoo Foundation.

“There is no impact on the operations, control or direction of Fortescue, Minderoo or Tattarang,” the couple said.

“We will continue our shared mission to create and gift our wealth to tackle community and global challenges, as recently shown by last month’s donation of one-fifth of our Fortescue shareholding to Minderoo Foundation.”

Jon Mills, an analyst at investment firm Morningstar, said the couple own a combined stake of around 37 per cent of Fortescue.

“Assuming it’s a 50/50 split, they own about 18.5 per cent each. That’s a big stake,” Mills said. “If one of them were to sell it to a potential acquirer then, maybe, maybe, someone could buy Fortescue, but they are still probably going to need the other one to approve it.”

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Andrew Forrest will retain control of his half share either directly, or through the Minderoo Foundation, so any potential acquirer will need his approval to complete an acquisition.

“I don’t think it’s going to have any major changes on the way Fortescue is run. I don’t think it will change the management or the board. I doubt that it will get taken over, but you never know,” Mills said.

There are “no questions” about whether Nicola will remain a shareholder in Fortescue, said sources close to the Forrest family.

The Forrests’ philanthropic Minderoo Foundation has funded a range of initiatives since its inception in 2011, including ocean research, ending slavery and supporting cancer and community projects. Minderoo controls about 30 per cent of Fortescue’s shares.

The couple share control of the private investment company Tattarang, which has a diverse range of investments across agri-food, energy, health technology, property, resources and lifestyle.

Forrest was ranked as Australia’s second-richest person – after Gina Rinehart – on the Australian Financial Review’s Rich List, worth about $33.3 billion, but is likely to slip down the listing once the couple separate their affairs.

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