When Austal Ltd (ASB AU) confirmed preliminary discussion with Wildcat Infrastructure, I mused this may be a ruse to extract more gruel from Hanwha. I was clearly too cynical.
A short while ago, Austal confirmed Wildcat has pitched a “non-binding indication of interest“ for Austal’s US ops at an EV of US$1.25-1.35bn, a ~12.5% premium to Hanwha’s indicative terms.
Wildcat is requesting for four weeks of due diligence. Austal is mulling its options. Hanwha has the clout to match and/or exceed Wildcat’s terms.
The Trade:
Shares are up 5.7% today as I type. And ~20% since Hanwha’s indicative Offer last month.
There’s still upside here should the sale to Hanwha or Wildcat go through.
More so if (indicative) terms go higher still.
This insight is labelled bullish as I’m not bearish here.