Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher

These ASX shares are starting the week positively. But why?

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is having a subdued start to the shortened week and has just slipped into the red. At the time of writing, the benchmark index is down slightly to 7,896.3 points.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising on Tuesday:

Austal Ltd (ASX: ASB)

The Austal share price is up 11% to $2.44. Investors have been buying this shipbuilder's shares after it received and rejected a takeover offer from South Korean chaebol, Hanwha. It made an unsolicited, conditional, and non-binding indicative proposal to acquire Austal by way of a scheme of arrangement for $2.825 cash per share. This represented a 28.4% premium to where the Austal share price ended last week. However, Austal is concerned that it would not be able to obtain the relevant regulatory approvals in Australia and the USA to enable it to proceed.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 67% to 93 cents. This is despite there being no news out of the biotechnology company this morning. Though, it is worth highlighting that the company's shares on Wall Street rocketed higher overnight. So, this gain appears to be in response to that. Investors have been fighting to get hold of Mesoblast's shares since the US FDA gave one of its stem cell therapies a big boost last week. Its shares are now up over 150% in the space of a week.

Novonix Ltd (ASX: NVX)

The Novonix share price is up almost 5% to 90 cents. This morning, this battery materials and technology company announced that it has been recommended to receive a major tax credit from the United States Government. Novonix looks set to receive US$103 million (A$159 million) in tax credits to support production of critical battery materials from its Riverside facility in Chattanooga, Tennessee.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up 5% to $1.44. This has been driven by news that the uranium miner has commenced production at the Langer Heinrich Mine (LHM) in central western Namibia. Both uranium concentrate production and drumming were achieved at LHM on 30 March, which means that the company will soon be able to capitalise on the sky high prices that uranium is currently commanding. Paladin Energy plans to provide guidance for key FY 2025 LHM operational parameters in the second half of the year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Austal. 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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