Hanwha Ocean's shipyard on Geoje Island, South Gyeongsang Province / Courtesy of Hanwha Ocean
Korea's Hanwha aims to buy up to 9.9 percent of Australian shipbuilder Austal in an after-market offer following its failed AU$1.02 billion ($646.17 million) takeover bid last year, a term sheet showed on Monday.
Hanwha has offered AU$4.45 each for 41.2 million Austal shares, showed the term sheet reviewed by Reuters.
The deal's bookrunners, in a message seen by Reuters, told investors the books had been covered for the transaction.
The Korean company does not intend to make a takeover bid for Austal "at this time," the term sheet showed.
Hanwha and Austal did not immediately respond to requests for comment.
The offer price represents a 16.2 percent premium to Austal's closing share price on Monday of AU$3.83.
Hanwha did not hold any direct ownership of Austal before the after-market offer, the term sheet showed, though it does hold a 9.9 percent interest through a cash-settled total return swap.
The Korean company intends to apply for Australian foreign regulatory approval to take its shareholding to 19.9 percent, the term sheet showed.
Hanwha Group is South Korea's seventh-largest conglomerate with 112 trillion won ($77.33 billion) in assets spanning the energy, defense and financial industries. (Reuters)
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