Highway Holdings Plans to Acquire 51% of Regent-Feinbau Adermann GmbH

Core Viewpoint - Highway Holdings Limited has signed a letter of intent to acquire 51% of Regent-Feinbau Adermann GmbH, a German-based manufacturer, primarily for cash and unregistered shares, aiming to enhance its OEM business and target the Chinese automotive market [1][4]. Company Overview - Highway Holdings is an international manufacturer providing quality parts for blue chip equipment manufacturers, with administrative offices in Hong Kong and manufacturing facilities in Yangon, Myanmar, and Shenzhen, China [8]. Acquisition Details - The acquisition is expected to close by the end of March 2026, subject to due diligence, negotiation of a definitive purchase agreement, and customary closing conditions [2]. - Regent-Feinbau specializes in precision sheet metal components and welded assemblies, serving OEMs and Tier 1 suppliers in sectors such as automotive, aerospace, and industrial [3]. Strategic Importance - The acquisition is part of Highway Holdings' strategy to rejuvenate its OEM business, which has faced revenue declines due to global challenges [4]. - Regent-Feinbau's capabilities in thick sheet metal cutting, bending, and welding will enhance Highway Holdings' offerings in the Chinese market, which is projected to grow at over 2% annually [5][6]. Financial Position - Highway Holdings has a strong financial foundation with approximately $5.3 million in cash and cash equivalents, equating to about $1.20 cash per share, positioning the company well for this acquisition and potential future transactions [6].