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.
Image source: Getty Images
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.
