Meet the $42 billion mystery Korean in Austal’s data room
It appears Street Talk’s eagle eye missed one defence major lurking in the data room of takeover target Austal.
It is understood Hanwha, the Korean conglomerate which operates in sectors ranging from explosives and aerospace to finance, energy and retail, is working through due diligence and has hired Macquarie Capital banker Stuart Owen to provide advice.
Hanwha acquired control of Daewood Shipbuilding and Marine Engineering this year. Getty
Street Talk has already reported significant interest in Austal, the ASX-listed shipbuilder with five shipyards in four countries including the United States, Australia, the Philippines and Vietnam. JPMorgan and Perth’s Poynton Stavrianou are running the sales process for Austal, which confirmed the inbound approaches last month.
The takeover interest has buoyed Austal – as have recent deals with the US Navy – with shares rising 15 per cent in the last month to close at $2.65 on Monday. They have risen some 29.9 per cent since January 1, giving the company a market capitalisation of around $960 million. Austal’s largest shareholder is Fortescue Metals chairman Andrew Forrest.
Hanwha’s defence and aerospace division is so far the only interested party outside the US. It faces competition for Austal from New York’s JF Lehman & Company, which specialises in investing in complex and regulated sectors, which has Morgan Stanley on hand to assist with due diligence. Then there’s Cerberus Capital Management, a $US60 billion ($88 billion) alternative asset investor, which has engaged Citi as it considers making an offer, while Washington’s Arlington Capital Partners is also interested.
Hanwha, which is listed in Korea and has an enterprise value of about $42 billion, has aggressively
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