The Fortescue Metals Group Ltd (ASX: FMG) share price is down over 1% after it was announced that Andrew Forrest had donated a stake in the company worth billions of dollars.
Fortescue is one of the country’s largest iron ore miners. Andrew Forrest is one of Australia’s richest people, and he was the founder, and is the leader, of Fortescue.
Massive donation of Fortescue shares
Tattarang is Forrest’s family’s investment holding business, while the Minderoo Foundation is philanthropic foundation of Andrew Forrest and Nicola Forrest.
It was announced today that 220 million Fortescue shares have been donated by Tattarang to the Minderoo Foundation. At the current Fortescue share price that’s a donation of around $5 billion.
In an effort to reassure investors, Dr Forrest said that “there will be no change in the direction and control of Fortescue.”
Why did Forrest donate so much?
In a statement by the Minderoo Foundation, it said this substantial donation brings the total endowment to around A$7.6 billion, which enables the “substantial investment to be deployed for greater public benefit”.
Minderoo’s “soon-to-be announced 2030 strategy” will enable the foundation to “make a greater impact in the face of looming global challenges such as climate change and economic disruption.”
Talking about the donation, Dr Forrest said:
As our world faces enormous challenges, we have elected to continue to use our material wealth to help humanity and the environment meet these existential risks.
Accumulating wealth should only be a small part of a person. Their contribution to their family and society is way more important. Other skills such as carpentry, farming, the arts, working in construction, or for government are equally as important. If you happen to be good at accumulating wealth, then I believe in using that skill for the greater good.
This is why we will continue to donate our wealth to causes where we can make a sustainable difference.
Nicola Forrest said that times are tough for many Australians and that she believes they need to do what they can with what they have. She referred to this donation providing more significant support for action including for vulnerable communities, oceans and gender equality.
It was noted by Minderoo that the Forrests were the first Australians to sign the ‘Giving Pledge‘, committing to give away the vast majority of their wealth in their lifetimes.
Final thoughts on Fortescue shares
I’m not concerned by this donation – Forrest has already shown a lot of commitment to philanthropy. The Minderoo Foundation needs to get its money from somewhere. Tattarang still owns a large amount of Fortescue shares.
