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Austal Receives Up to $1.35 Billion Bid From Private US Investment Firm

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Austal Receives Up to $1.35 Billion Bid From Private US Investment Firm

Austal (ASX:ASB) received a bid for its US assets from a Miami-based, privately owned investment firm, valuing the Australian shipbuilder's US operations at a higher price than Korea's Hanwha Group's recent proposal.

The non-binding proposal from Wildcat Infrastructure has an enterprise value between $1.25 billion and $1.35 billion, on a cash-free and debt-free basis, compared with Hanwha Group's latest August offer of up to $1.2 billion.

According to a Bloomberg report, Austal makes almost 80% of its revenue from its US operations, although the company posted a loss in fiscal 2026 impacted by "onerous" US contracts.

Wildcat's offer price is conditional on it being able to conduct a four-week due diligence, and it intends to operate Austal USA as a standalone platform, retaining the Austal brand and US operations.

Notably, the US has recently cut back on joint military drills with South Korea, as the recent geopolitical rift between the two countries may present another hurdle to Hanwha Group's offer.

Hanwha's previous offers for Austal were also hindered by regulatory barriers, as the South Korean company will have to win approvals in Australia as well as the US for any deal to materialize.

Also, the firm was appointed as Australia's strategic shipbuilder in November 2024 for making key defense vessels in Western Australia, turning its focus on local expansion.

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