Red Cat Signs Agreement for Steyr Takeover Offer at 39.00 Euros a Share
Key Facts
Steyr Motors announced on 21 October 2026 that it had signed a business combination agreement with Red Cat Holdings and SMOT Acquisition setting out the framework and procedures for the proposed cash takeover offer. The company said in its disclosure that the offer price remained unchanged at 39.00 euros in cash for each Steyr share. The offer is being made by SMOT Acquisition, a wholly owned subsidiary of Red Cat. Red Cat said renewed talks between the parties had resulted in a "fully funded cash offer". The offer requires a minimum acceptance threshold of 50% of Steyr shares plus one share under the proposed takeover terms.
According to Red Cat, the cash consideration represents a premium of 28.9% to Steyr's closing share price on 16 October 2026. The offer price is also 27.3% above the 30-day volume-weighted average share price, according to the company's statement. Shareholder B&C Holding Österreich has committed to accepting the offer for its stake of about 15% in Steyr. Steyr Chief Executive Julian Cassutti said of his intention to tender his personal holding: "I intend to tender my own shares alongside them." Red Cat had previously withdrawn a preliminary non-binding proposal for Steyr, saying at the time that no definitive agreement had been signed.
Red Cat links the proposed acquisition to its strategy to develop unmanned surface vessels within its Blue Ops division. The company said Steyr's engine technology and manufacturing expertise were among the capabilities it sought to bring together to support that strategy. Red Cat also identified Steyr's European base and its own defense industry relationships as assets. Blue Ops previously announced plans to invest 30 million dollars as part of a manufacturing expansion in Georgia. The announced expansion plans aim to create more than 200 local jobs, according to Red Cat, as part of its expansion in marine manufacturing.
The agreement includes binding commitments concerning Steyr's site and employees, according to the company's statement announcing the signing. Red Cat has pledged not to relocate the headquarters, manufacturing or research and development activities from the site for 3 years after settlement of the offer. On employment, the agreement includes a commitment for two years after settlement not to cause operational redundancies among technical employees. The commitment also covers not seeking operational redundancies among other employees during the same period, according to the wording announced by Steyr. The agreement also provides for the continuation of employee rights and collective agreements, alongside the site and employment commitments.
The proposed deal follows Steyr Motors Group's reported revenue of about 22.8 million euros in the first half of 2026, compared with 23.1 million euros in the corresponding period of 2025, according to its earnings disclosure. In its half-year results update, the company reported an order backlog worth 310 million euros extending through 2030. Regarding management, Steyr said the bidder did not intend to make changes to the management board. The bidder seeks representation on the supervisory board proportionate to its equity stake, according to the agreement statement. The agreement permits, in principle, structural measures including delisting, a squeeze-out of minority shareholders or integration of Steyr into a broader group structure.
The company plans to publish the offer document before 15 November 2026, according to the timetable announced by Steyr. The shareholder acceptance period is expected to end on 18 December 2026. Completion of the takeover is subject to foreign direct investment approvals in Austria and Australia. Required approvals also include Italy and the United Kingdom as part of the regulatory conditions for completing the transaction. Steyr expects to obtain these approvals by 30 June 2027, according to its statement on the agreement.