Austal, the Australian strategic shipbuilder, has entered a trading halt following Treasurer Jim Chalmers’ approval of Hanwha’s proposal to increase its stake in the company. Hanwha, a South Korean company, sought to raise its ownership from 9.9 per cent to 19.9 per cent. Austal specialises in designing, constructing, and maintaining defence and commercial vessels. The company is a key player in Australia’s shipbuilding industry.
Austal is anticipated to release an official statement before its shares resume trading on the Australian Securities Exchange (ASX). The trading halt provides the company an opportunity to communicate details surrounding the increased stake to investors and the broader market.
The move comes after a period of significant growth for Austal, with its shares rallying 107.1 per cent this year, reaching $6.42 as of Thursday’s close. The company’s performance has attracted notable investors, including billionaire Andrew Forrest.
The Treasurer’s decision marks a significant development for Austal and its relationship with Hanwha, potentially influencing the company’s future strategic direction and market valuation. Further details are expected to be disclosed in Austal’s forthcoming statement.