US-based Wildcat submits bid for Austal
Full story: https://grafa.com/en/news/australia/us-based-wildcat-submits-bid-for-austal
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Wildcat has reportedly made a counter bid for Austal USA valued between US$1.25 billion and US$1.35 billion.
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The proposal exceeds the US$1.2 billion maximum valuation previously offered by South Korea's Hanwha Group.
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The potential deal allows Austal to divest its loss-making American division and focus on its Australasian defence operations.
Austal (ASX:ASB) has reportedly received an uninvited counterbid worth up to US$1.35 billion from US investment firm Wildcat for its American operations.
The proposed transaction values the division between US$1.25 and US$1.35, topping a rival offer of up to $1.7 billion submitted by Hanwha Group.
The American unit currently generates two-thirds of total company revenue, but recent operations have suffered ongoing financial difficulties.
Austal stated that the transaction is expected to allow the company to realign its operational focus towards sovereign defence projects in Australasia.
Following the announcement, the Austal share price was up at $4.35.
The company recently secured a strategic shipbuilding agreement with the Australian government to build naval vessels in Western Australia.
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