The ASX-listed group has rejected a bid from the defence and aerospace conglomerate after warning it would likely fail to gain required government approvals.
Korea’s Hanwha Group says it is a “credible buyer” and has made a “highly competitive” offer for Austal despite the ASX-listed naval shipbuilder rejecting a $1 billion takeover proposal from the defence and aerospace conglomerate.
“Hanwha has already obtained FIRB approval for prior investments in Australia and has a proven track record of investment in Australia’s defence industrial base.”Street Talk has previously reported that New York’s JF Lehman & Company, which specialises in investing in complex and regulated sectors, has also been interested in Austal, as has.
In a statement, Hanwha said it had made the takeover offer for Austal because it was a “known entity” and the acquisition would “build upon the countries’ alliances and support Australia’s national security as a partner and ally”.governments, shareholders, employees, and communities and is planning to go through all the proper processes towards a successful sale,” it said.
“This latter consideration is particularly relevant in relation to the proposal from Hanwha, given Austal’s position as the designer and builder of defence vessels for the Australian and US navies and ownership clauses associated with defence contracts,” it told investors on Tuesday, adding some contracts required “a commitment to ensuring continuous naval shipbuilding in Australia”.
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