Steyr Motors Stock: Second Attempt from Texas
In the summer, talks collapsed, followed by a profit warning. Now, Red Cat Holdings is returning to the negotiating table, this time with a public offer. The US defense company is offering 39.00 euros per share for all shares of Steyr Motors.
An Offer with a Threshold
The offer is subject to one condition: Red Cat wants to reach a minimum acceptance threshold of 50 percent plus one share. Without this majority, the deal will not go through. This is an announced offer that must still go through the acceptance process.
The move does not come as a complete surprise. Even after the first talks were broken off, the impression in the investor scene was that Red Cat or another interested party from the sector would make a new attempt sooner or later. Steyr builds special diesel engines for military use, a business that is in demand in the defense environment.
Who Benefits
The situation is particularly interesting for B&C Holding Austria. It is the last remaining anchor shareholder and holds 15 percent. At the time of the IPO on October 30, 2024, it had initially secured 9.90 percent and later increased its stake.
The issue price was 14 euros at the time. The offer is therefore significantly above the entry level of the stock market newcomers. Mutares, the private equity owner that prepared Steyr Motors for the stock market, has also already left its role as a major shareholder. Market observers see the constellation as a confirmation of the strategy at that time.
What Counts Now
The profit warning from the summer casts a shadow over the valuation. Red Cat is paying the price after this setback, which could be an argument for shareholders to view the offer as an exit at a solid level. Whether the price is sufficient depends on how the shareholders assess the potential of the engine manufacturer.
The acceptance rate is now decisive. If Red Cat reaches the threshold of 50 percent plus one share, Steyr Motors will pass into the hands of a US corporation. With the B&C stake of 15 percent as a key vote, the direction of the offer is significantly determined.
