Hanwha Group is making another move on Australian shipbuilder Austal, offering to buy up to 9.9% of the company’s shares in an after-market deal following its unsuccessful A$1.02 billion takeover bid last year.
The South Korean conglomerate has offered A$4.45 per share for 41.2 million Austal shares, representing a 16.2% premium to Monday’s closing price of A$3.83, according to a term sheet reviewed by Reuters. Deal bookrunners have indicated that books for the transaction are already covered.
While Hanwha doesn’t currently hold a direct stake in Austal, it maintains a 9.9% interest through a cash-settled total return swap. The company plans to seek Australian foreign regulatory approval to potentially increase its shareholding to 19.9%, though it has stated it does not intend to make a takeover bid “at this time.”
Hanwha, South Korea’s seventh-largest conglomerate with assets of 112 trillion won (US$77.33 billion) spanning energy, defense and financial industries, appears to be taking a more measured approach after its previous acquisition attempt failed.
