South Korean firm to acquire US shipbuilder

Philly Shipyard has entered into a share purchase agreement with South Korean companies Hanwha Systems and Hanwha Ocean for the purchase of Philly Shipyard, the sole operating subsidiary of PHLY. The transaction will result in the company selling all of its business against receiving a cash consideration of US$100 million.

The transaction is subject to the satisfaction of certain customary conditions, including approval by the Committee of Foreign Investments in the US (CFIUS) and other regulatory approvals being obtained as well as no material adverse event having occurred in relation to PSI. Subject to satisfaction of all closing conditions, the parties expect that the Transaction will close during the fourth quarter of 2024.

In the event of cost overruns in excess of US$100 million in current projects undertaken by PSI compared to the company’s current estimates, the parties have agreed principles to reduce the payable purchase price at closing. Except for certain transaction costs, the purchase price is not subject to any other adjustments.