Austal (ASB AU): Hanwha Cleared To Lift Stake To 19.9%
After the US’ CFIUS permitted the Hanwha Group to acquire up to a 100% stake in Aussie-based shipbuilding and defense firm Austal Ltd (ASB AU), FIRB’s support appeared a lock.
FIRB has now cleared Hanwha to lift its stake to 19.9% from 9.9%, “and cannot increase its shareholding above 19.9 per cent“. Andrew and Nicola Forrest’s Tattarang currently holds ~19.4%.
This development should not come as a surprise. Fundamentally, Austal is not inexpensive.
The Trade:
FIRB ‘s approval was not unexpected. However, such confirmation is still welcome.
Austal’s multiples are not “cheap”.
Nevertheless, Austal has a A$13bn orderbook with a 10+ year horizon.
This insight is labelled bullish as I’m not bearish here.
Keep reading with a 7-day free trial
Subscribe to Aussie/Kiwi M&A/Events to keep reading this post and get 7 days of free access to the full post archives.