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SEOUL, South Korea, April 2, 2024 /PRNewswire/ -- Hanwha Group (Hanwha) has submitted an indicative offer to the Australian headquartered Austal board to acquire the global business of Austal, via a scheme of arrangement, subject to satisfactory due diligence.
Hanwha brings important capabilities and investment to support Austal's business and local Australian communities while aligning with government objectives in Australia, the US and South Korea.
A recent media report which states concerns that the Australian government would not grant permission of the sale of Austal because it carries out defence contracting work for the Australian government is baseless.
"There is no foundation of the claim that the Foreign Investment Review Board (FIRB) would reject Hanwha's acquisition of the company," David Kim, Executive Vice President at Hanwha said. Hanwha is respectful of the FIRB regulatory approval process, but is confident in its ability to obtain FIRB approval for the transaction.
"Hanwha has already obtained FIRB approval for prior investments in Australia and has a proven track record of investment in Australia's defence industrial base, being the contracted supplier of infantry fighting vehicles, self-propelled howitzers and ammunition resupply vehicles with significant investment in a Geelong manufacturing facility that employs local workers."
Hanwha is a credible buyer with a highly competitive offer. The company's rationale for the interest in Austal includes:
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Strengthening alliances: Hanwha is a known entity and respected ally to both Australia and US defence leaders with a strategic presence in the Indo-Pacific. Hanwha's acquisition of Austal would build upon the countries' alliances and support Australia's national security as a partner and ally, building upon a series of relationships between key defence and security partners.
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Supporting government priorities: The deal is aligned with Australian government objectives outlined in the Independent Analysis of Navy's Surface Combatant Fleet, where Hanwha's capabilities and investment would accelerate delivery of critical programs and allow Australia to keep sovereign shipbuilding capabilities in Henderson, WA.
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Austal value: Hanwha has more than 50 years of experience in shipbuilding, which would expand Austal's growth potential and accelerate innovation (e.g. steel shipbuilding, production automation, Smart Shipyards, autonomous technology) while unlocking Austal value with increased investment and efficiencies.
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Long-term partner: Hanwha is a long-term partner with the intent to invest in the business along with the workforce and communities it supports, while bringing stability to the company with long-term partnership at the forefront of decision making. With a focus on local jobs, community partnerships and economic development, Hanwha is an ideal partner for stable long-term growth compared to other ownership models.