Confirmation of receipt of unsolicited proposal from Hanwha

Austal Limited (ASX: $ASB) has confirmed the receipt of an unsolicited, conditional, and non-binding indicative proposal from Hanwha Ocean Co., Ltd. to acquire Austal by way of a scheme of arrangement. The proposal entails Austal shareholders receiving $2.825 cash per Austal share and is subject to various conditions, including due diligence and regulatory approvals.

Executive Commentary on Hanwha's Indicative Proposal

Austal invests significant resources in evaluating potential purchasers' access to confidential financial records and contracts as part of the due diligence process. The company considers factors such as shareholder value creation, competition concerns, and the purchaser's ability to complete the transaction, including obtaining necessary government approvals. Given Austal's role as the designer and builder of defence vessels for the Australian and US navies, the ownership clauses associated with defence contracts are crucial considerations. The Austal Board, along with its advisers, has engaged with Hanwha to assess the likelihood of obtaining regulatory approvals in Australia and the USA for the proposed transaction. At present, Austal is not satisfied that these mandatory approvals would be secured, but remains open to further engagement if Hanwha can provide certainty on the transaction's approval.

Summary of Austal's Receipt of Indicative Proposal from Hanwha

Austal Limited (ASX: $ASB) has confirmed the receipt of an unsolicited, conditional, and non-binding indicative proposal from Hanwha Ocean Co., Ltd. to acquire Austal by way of a scheme of arrangement. The proposal, subject to various conditions including due diligence and regulatory approvals, offers Austal shareholders $2.825 cash per share. Austal, being the designer and builder of defence vessels for the Australian and US navies, carefully evaluates potential purchasers' access to confidential financial records and contracts. The company is open to further engagement if Hanwha can provide certainty on obtaining the necessary regulatory approvals. Austal shareholders are not required to take any action regarding the Indicative Proposal. The company's position as Australia's largest defence exporter and its strategic shipbuilding agreement with the Australian Government underpin its commitment to continuous naval shipbuilding in Australia.