Austal confirms talks with Wildcat Infrastructure over US subsidiary sale

Austal has confirmed it held preliminary discussions with Wildcat Infrastructure, a United States-based investment firm, regarding a potential acquisition of its American subsidiary, Austal USA. While the company stated it has not yet received a formal proposal, the news has intensified speculation of a bidding war.

This development follows a non-binding, indicative proposal from South Korean defense company Hanwha Defence USA, which was lodged in August. Hanwha’s proposal values Austal USA between US$1.05 billion and US$1.2 billion on an enterprise value basis. The Hanwha bid specifically targets the shares in the Austal USA holding entities and excludes Austal Limited’s Australasian operations and its Strategic Shipbuilding Agreement with the Commonwealth.

Any completed sale of Austal USA would require regulatory approvals from the Committee on Foreign Investment in the United States (CFIUS), the Defense Counterintelligence and Security Agency, and United States antitrust regulators.