US drone firm Red Cat offers €39 per share for Austria's Steyr Motors

what happened

Austrian engine and engine component maker Steyr Motors said on Monday that US company Red Cat Holdings intends to launch a voluntary offer for all its shares at €39 each in cash. The price is 28.9% above the last close. Reuters reports the deal is worth roughly €204.8 million, or $230 million.

B&C Holding Österreich, which holds about 15% of the company, has agreed to sell its stake into the bid. CEO Julian Cassutti also plans to tender his own shares. The offer hinges on foreign direct investment clearances and on securing at least 50% of shares plus one. Red Cat expects to close the purchase in the first half of 2027.

Supervisory board chair Rolf Wirtz said the directors see promising strategic value in the planned combination. Steyr shares rose around 20% in premarket trading.

why it matters

For the market, the premium and the pre-agreed stake sales are the key points, since they lower the risk that the offer fails. Regulatory conditions and a timeline stretching into 2027 still leave room for change. The rate of $1 = €0.8910 matters for dollar-based investors converting the deal value.

market impact

Steyr Motors: the 28.9% premium supports the shares; the deal depends on approvals and a 50% plus one share threshold

tags

instruments