Austal shares rise amid Hanwha sale talks and new Australian contracts

Austal Ltd shares rose significantly following updates provided to shareholders during the company's annual general meeting. The defense shipbuilder reported that negotiations regarding the potential sale of its U.S. subsidiary, Austal USA, have progressed, with discussions involving Hanwha Defence USA now reaching the stage of transaction documents.

While Hanwha previously made a non-binding indicative offer in the range of US$1.05 billion to US$1.2 billion, a binding proposal has not yet been received. The deadline for Hanwha to submit a binding offer was extended to October 14. Austal is also in discussions with Wildcat Infrastructure regarding the U.S. business.

Separately, Austal reported a surge in Australian naval contracts totaling approximately A$5 billion. This includes A$1 billion for 18 Landing Craft Medium for the Australian Army and A$4 billion for eight Heavy Landing Craft. Additionally, the National Reconstruction Fund Corporation has provided A$245 million in financing to support Austal Defence Shipbuilding Australia for the construction and equipping of facilities for the Landing-Craft-Heavy program.