Austal shares surge 6% as another bidder enters the race

It has been an interesting morning for Austal Ltd (ASX: ASB) shareholders.

The shipbuilder entered a brief trading pause on Wednesday, which immediately had investors wondering what was coming.

And we didn't have to wait long.

Austal shares are now up 6.44% to $4.63 after the company released an update on the future of its US business.

Let's dive right in.

A new offer has landed

According to the release, Austal has received a non-binding proposal from Wildcat Infrastructure to buy Austal USA.

Wildcat has valued the business at between US$1.25 billion and US$1.35 billion on a cash-free, debt-free basis.

The proposal is subject to 4 weeks of due diligence, while Wildcat says it wants to keep the Austal brand and run the US business as a standalone platform.

Austal said its board and advisers will now consider the proposal.

And Wildcat isn't the only one interested.

South Korea's Hanwha, which already owns 19.9% of Austal, has offered between US$1.05 billion and US$1.2 billion for the US operations.

So, Wildcat has come in above Hanwha's range at both ends.

The Australian puts the new proposal at roughly $1.73 billion to $1.87 billion.

Keep in mind, that's a pretty big number when Austal's entire market value is currently around $1.95 billion.

Why the US business is attracting interest

Austal's latest results help explain why buyers are taking a closer look at the US operations.

Group revenue rose 11% to $2.03 billion in FY26, but the company still posted a $53.6 million net loss.

The US division was the main drag, recording an EBIT loss of $202.8 million after provisions linked to several loss-making contracts.

The Australasian business had a much better year.

Revenue climbed 49% to $650.7 million, while EBIT jumped 137% to a record $85.3 million.

So, if Austal does sell the US business, it could leave the group with a large amount of cash and a much stronger Australasian operation.

What happens next?

There is still plenty to play out from here.

Wildcat's offer is non-binding and it still needs to complete due diligence, while Hanwha may decide to come back with a higher offer of its own.

But having another buyer interested puts Austal in a stronger position as it weighs up what to do with the US business.

Even after today's rise, Austal shares are still down around 31% in 2026 and roughly 44% over the past year.

That makes the next few weeks worth watching.

The post Austal shares surge 6% as another bidder enters the race appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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