Austal shares rocket after $1b takeover bid
Make us a preferred source
Make us a preferred source on Google
More news: Austal shares rocketed 10.45% to $2.43 in early trading on the ASX following a takeover bid by its South Korean rival Hanwah Ocean.
Hanwah has offered $2.825 in cash per Austal share, valuing the company at $1.02 billion.
Austal receives $1b South Korean takeover bid
The news: Shipbuilder Austal says its board has considered a takeover bid from South Korean rival Hanwha Ocean but is not sure the proposal will receive the necessary regulatory approvals.
The numbers: Hanwha has offered $2.825 in cash per Austal share, valuing the company at $1.02 billion. The stock last closed at $2.20 each.
The context: The Perth-based shipbuilder designs and builds defence vessels for the Australian and US navies and was last year appointed the federal government’s strategic partner for vessels to be constructed in Western Australia.
Austal said Hanwha’s unsolicited proposal was conditional on regulatory approvals from Australia’s Foreign Investment Review Board, the Committee on Foreign Investment in US and the US Defense Counterintelligence and Security Agency.
What they said: “At present, Austal is not satisfied that these mandatory approvals will be secured,” the company said in a statement to the ASX that confirmed media reports from Monday about the bid.
However, it added it was open to further engagement if Hanwha could provide certainty that the transaction will be approved.
The source: ASX announcement
