Wildcat Infrastructure says bid for Austal’s US operations driven by desire for US ‘maritime supremacy’

Austal suitor Wildcat Infrastructure has confirmed it has made an offer for the Australian-based shipbuilder’s American arm for up to $1.87 billion in an effort to return “maritime capability and supremacy” to the US.

After almost a week of speculation, prompted by revelations in The West Australian on Monday of an offer, the Florida-based company said it had formally lodged an offer that valued Austal USA at between $US1.25b to $US1.35b.

The offer is strictly confined to its US operations, focused at Mobile, Alabama, where it has a shipyard, and in San Diego, California, across which Austal has a workforce of several thousand people.

The formalisation of the offer means there are now two competing bids for Austal’s US operations — the other from South Korean group Hanwha for $US1.05b to $US1.2b.

Little-known Wildcat said it was attracted to Austal’s operations because it reflected its investment outlook: long-term capital across energy, infrastructure and telecommunications — sectors it said required patience and disciplined structuring.

Hanwha is said to desperately want the US shipyard to beef up its its influence in US naval shipbuilding.

Austal agreed to consider Hanwha’s proposal for the facility after messaging from the Trump Administration that suggested it would prefer South Korean ownership of the Mobile yard.

But there is now a sense that the US Government could look more favourably towards an American-owned buyer.

The attention has on Austal has grown in recent years thanks to its role in the AUKUS defence agreements between Australia, the UK and the US.

“There are very few yards in the US qualified to build submarine modules to the standard these programs demand, and Mobile is one of them,” Wildcat managing director William Elischer said late on Thursday. “Clearly this matters to Australia and AUKUS Pillar 1.

“There is no quick way to build another facility. We are in a race against the clock.

“That makes ownership of this yard a security question as much as a commercial one. Ours is American capital that commits to the long term — the rate these vessels get built matters for the allies on which our mutual security depends, and we are laser-focused on that.”

Wildcat Infrastructure is backed by Wildcat Equity Partners, a privately-held family investment firm founded in 2006.

Group chair Eric Nicolaides said buying Austal US was a key part of its broader strategy to invest in and acquire shipyards to bring “maritime capability and supremacy” back to the US — in line with its global positioning.

“The need for advanced naval capabilities is front of mind in multiple theatres and our offer presents a contribution to that solution,” he said.

Wildcat drew parallels between its long-term investments in underwriting energy infrastructure and running a shipyard. It said in the statement that shipyards were long-cycle, capital intensive assets whose economics were set years before delivery and being exposed to policy.