Australian shipbuilder Austal said on Wednesday US-based Wildcat Infrastructure had offered up to $1.35 billion for its US business, topping a bid from South Korea's Hanwha Group and sending its shares sharply higher.
The competing proposals come as Washington tries to rebuild naval capacity and lift submarine production, increasing the value of assets such as Austal USA.
With existing shipyards, a skilled workforce and defence relationships, Austal USA is among a small group of operators capable of supporting Washington's efforts.
"I think what buyers see in Austal USA is its scarcity value, particularly against the backdrop of ongoing geopolitical tensions and the conflict with Iran," said Cliff Man, CEO at ETF shares.
Austal shares closed 7.1 per cent higher after rising as much as nine per cent to AU$4.74, their highest in nearly a month.
Wildcat offered $1.25 billion to $1.35 billion for Austal USA on a cash-free, debt-free basis, subject to four weeks of due diligence, topping Hanwha's bid of up to $1.20 billion made a month ago.
Hanwha Group declined to comment when contacted by Reuters.
In December, the Australian Government approved Hanwha's proposal to raise its stake in Austal to 19.9 per cent from 9.9 per cent, subject to conditions on data access and security.
Austal's shipbuilding footprint spans four countries, with five shipyards in Australia, the US, the Philippines and Vietnam.
Florida-based private investment firm Wildcat Infrastructure said it intends to operate the business as a standalone platform while retaining the Austal brand and its US operations.
Austal's US business segment reported an earnings before interest and taxes loss of AU$202.8 million ($146.50 million) for the 2026 financial year.
(Reporting by Sneha Kumar and Roshan Thomas in Bengaluru; Additional reporting by Heejin Kim in Seoul; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)