Austal seeking confirmation that US regulator approved Hanwha deal
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The news: Austal has cast doubt on Hanwha’s claim that the US has greenlit its plans to increase equity holdings in the ASX-listed shipbuilder — a year after a takeover was turned down amid regulatory concerns.
The number: Austal shares were 6.8% higher at $6.16 at 11:34am AEST.
The context: Hanhwa bought a 9.9% stake in Hanwha in March and is waiting on a decision from the Australian Foreign Investment Review Board and Treasurer Jim Chalmers on its plans to increase its holding to 19.9%.
According to an Austal statement to the ASX on Tuesday, the South Korean conglomerate advised the Australian company, which has significant operations in the US, that the Committee on Foreign Investment in the United States (CFIUS) has now approved a shareholding increase to up to 100%.
Upon seeking independent verification, however, Austal said informal discussions suggest that the CFIUS approval is different to what is claimed by Hanwha.
The shipbuilder is seeking written confirmation from CFIUS and said it will update shareholders upon receipt.
Last year, Austal rejected a $1.02 billion takeover proposal from Hanwha citing concerns the deal would not receive regulatory approval.
The source: ASX
