Hanwha Group initiated a public tender offer to acquire shares in Australian shipbuilder Austal (ASX:ASB), Pulse News reported Tuesday.

Hanwha Systems (KRX:272210) and Hanwha Aerospace (KRX:012450) injected 266.6 billion won into their Australian subsidiary for the bid.

Hanwha plans to buy a 9.9% stake before seeking the approval of Australia's Foreign Investment Review Board (FIRB) to acquire at least 19.9% of Austal, the report said.

The deal is part of Hanwha's efforts to gain a strategic entry point into the US market by leveraging Austal's established warship-building shipyard there.

Shares of Hanwha Systems rose nearly 1%, while those of Hanwha Aerospace fell 1% in recent trade. Shares of Austal fell about 3%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)