Hanwha Defense USA makes bid for Austal USA

Austal USA's shipyard in Mobile, Alabama (Austal USA)

Hanwha Defense USA has made a “preliminary, non-binding offer to acquire Austal's US business”, James Hewitt, spokesman for Hanwha Defense USA, said in a statement on 10 August.

“Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA's operations and financials, including newly disclosed information,” he said.

“Hanwha has made it a priority to significantly contribute to revitalising American shipbuilding and is exploring a range of options to expand our footprint in the United States,” Hewitt added.

The company declined to provide further information on the proposal.

In an investor statement on 11 August, Austal said it had “received an indicative, non-binding, and conditional offer from Hanwha Defence USA, Inc to acquire the business entities and operations of Austal USA for an indicative enterprise value of USD1.05 – USD1.20 billion on a cash and debt-free basis, subject to a normalised level of working capital and other customary transaction adjustments”.

Key conditions include the completion of due diligence by Hanwha, regulatory approvals, and other customary transaction conditions, the statement said.

It emphasised that the offer did not include “any publicly traded shares in Austal nor Austal's core Australasia operations”.

“The Austal Board and its advisers have carefully assessed the proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal,” the statement added.