Steyr Motors Stock Surges 20% Premarket on Red Cat Tender Offer

3-line summary

• US defense and robotics drone maker Red Cat Holdings launched a voluntary public tender offer for all outstanding shares of Austrian engine maker Steyr Motors at 39 euros per share in cash, a 55.8% premium over its 52-week low, 28.9% over the October 16 close, and 27.3% over the 30-day volume-weighted average price; anchor shareholder B&C Group, which holds about 15%, has irrevocably committed to tender its shares.
• Steyr Motors shares surged more than 20% in Tradegate premarket trading following the announcement; the offer requires regulatory approvals in Austria, Italy, Australia, and the UK and a minimum acceptance threshold of 50% plus one share.
• Red Cat said the deal is meant to strengthen its uncrewed-surface-vessel strategy by combining Steyr's marine engine technology and European manufacturing base with its defense customer network and autonomous maritime portfolio; Red Cat plans to keep Steyr's headquarters, manufacturing, and R&D in Austria, support existing customer relationships, and invest in expanding autonomous maritime capabilities.

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