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Update: Austal Gets Up to $1.2 Billion Offer for US Operations From Hanwha Unit; Shares Up 19%

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(Updates to add stock movement in the headline and the last paragraph)

Australian shipbuilder Austal (ASX:ASB) received a non-binding, conditional proposal from a unit of South Korea's Hanwha Group to acquire its U.S. operations for an indicative enterprise value of up to $1.20 billion.

Hanwha Defence USA has offered $1.05 billion to $1.20 billion for the relevant Austal USA entities and operations, according to a Tuesday press release.

The proposed deal would cover 100% of the relevant Austal US entities but exclude Austal's publicly traded shares and its core Australasia operations in Australia, the Philippines, and Vietnam.

The offer is subject to due diligence, regulatory approvals, and agreement on definitive transaction terms.

Austal's board has approved a four-week due diligence period for Hanwha to review the US business and engage with key government and other counterparties.

The proposal does not include a financing condition, the statement said.

Austal's shares jumped around 19% in recent Tuesday trade.

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