Korea’s Hanwha has acquired a 9.9% stake in Austal Limited, purchasing approximately 41.2 million shares at $4.45 each through advisory firm Jarden. The company intends to seek regulatory approval to increase its stake to 19.9% but has stated it does not plan a full takeover.
The price offered represents a 16.2% premium over Austal’s last closing price of $3.83.
Hanwha has previously attempted to acquire Austal, submitting three non-binding offers, including a $1 billion bid in 2023. However, it failed to gain approval and withdrew its bid. Hanwha’s new investment follows a $220 million capital raise by Austal to expand its operations in Alabama. Austal’s chairman and founder, John Rothwell, sold more than a third of his 9% stake during this process.
The Foreign Investment Review Board (FIRB) must approve any stake above 10%.
While Austal previously rejected Hanwha's bid, partly due to regulatory concerns, Defence Minister Richard Marles later indicated the government would not block a potential deal.
Following Hanwha increasing its stake to become a substantial shareholder, Austal’s stock rose by up to 9.7% in trading on Tuesday morning, marking its largest gain since February 21.
Hanwha Group is South Korea's seventh-largest conglomerate, with assets totalling 112 trillion won ($77.33 billion) across the energy, defence, and financial sectors.