Hanwha approved for Austal takeover: Stake rise to 19.9pc with conditions on sensitive info says Jim Chalmers
Treasurer Jim Chalmers has given approval for South Korean defence giant Hanwha to increase its ownership of WA based shipbuilder Austal from 9.9 percent to 19.9 percent but says the move will be “subject to strict conditions”.
In a statement, Dr Chalmers announced his long overdue decision saying it was “not taken lightly and comes after extensive consultation and long and careful deliberation”.
“This decision ensures there are greater protections for our Strategic Shipbuilder and the Government’s sovereign interests in Austal,” he said.
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By continuing you agree to our Terms and Privacy Policy.“It is entirely consistent with FIRB’s (Foreign Investment Review Board) unequivocal advice not to object to the proposal, subject to conditions.”
Under the move Hanwha would remain a minority shareholder and would not be able to increase its shareholding above 19.9 per cent, while limits would also be placed on Hanwha’s access to sensitive information and possible board appointments to Austal.
Last month The West revealed Tokyo had repeatedly expressed concerns about the South Korean takeover bid given Austal is Australia’s strategic shipbuilder and slated to construct the Japanese designed Mogami warships at Henderson next decade.
More to come...
