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Highway Holdings Completes Acquisition of 51% of Regent-Feinbau Adermann GmbH

(Positive)

Highway Holdings (Nasdaq: HIHO) completed acquisition of 51% of Regent-Feinbau Adermann GmbH on February 28, 2026 for a total purchase price of €662,000.

The company paid €612,000 in cash and issued 64,851 common shares (€50,000 value) with transfer restrictions until after March 31, 2027. Regent is a certified precision sheet-metal manufacturer serving automotive and aerospace OEMs and reported average annual sales of approximately US$2.7 million over the past three years. Management continuity and expected manufacturing growth opportunities were highlighted.

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Positive

  • Acquisition price of €662,000 completed February 28, 2026
  • Cash paid €612,000 toward the purchase price
  • Equity consideration of 64,851 common shares issued to seller
  • Regent average sales approximately US$2.7 million over last 3 years
  • Tier 1 supplier relationships in German automotive and aerospace sectors

Negative

  • None.

News Market Reaction – HIHO

-3.04% 2.1x vol
9 alerts
-3.04% Session close to close
+6.9% Peak Tracked
-6.0% Trough Tracked
$4.56M Market Cap
2.1x Rel. Volume

In the Mar 5 session, HIHO declined 3.04%, reflecting a moderate negative market reaction. Argus tracked a peak move of +6.9% during that session. Argus tracked a trough of -6.0% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement completes Highway Holdings’ acquisition of 51% of Regent-Feinbau for €662,000, spl...
Analysis

This announcement completes Highway Holdings’ acquisition of 51% of Regent-Feinbau for €662,000, split between cash and 64,851 locked-up shares. Regent has averaged US$2.7 million in annual sales over the past three years and brings certified precision sheet-metal capabilities for automotive and aerospace customers. Historically, the initial acquisition plan triggered a strong share-price response, so investors may track how integration, profitability trends, and future M&A opportunities evolve from this platform.

Key Figures

Stake acquired: 51% Total purchase price: €662,000 Cash portion: €612,000 +5 more
8 metrics
Stake acquired 51% Equity interest in Regent-Feinbau Adermann GmbH
Total purchase price €662,000 Consideration for 51% of Regent-Feinbau
Cash portion €612,000 Cash paid to LeMALe at closing
Equity portion €50,000 Value of HIHO common shares issued to Seller
Shares issued 64,851 shares HIHO common shares issued to LeMALe
Lock-up end date March 31, 2027 Transfer restriction on issued HIHO shares
Avg annual sales US$2.7 million Regent-Feinbau average sales over last 3 years
Targets evaluated 10 companies over 3 years M&A due diligence before choosing Regent-Feinbau

Previous Acquisition Reports

1 past event · Latest: Dec 23 (Positive)
Same Type Pattern 1 events
Date Event Sentiment 24h Move Catalyst
Dec 23 Acquisition announcement Positive +50.6% Announced plan to acquire 51% of Regent-Feinbau to expand capabilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The prior Regent acquisition announcement saw a strong positive move of 50.6%, suggesting the market has previously rewarded this strategic direction.

Recent Company History

Over the past year, Highway Holdings has used M&A to pivot its business mix. The prior Regent-Feinbau acquisition announcement on Dec 23, 2025 highlighted expansion into certified precision sheet-metal for automotive and aerospace and drove a 50.6% move. That deal followed earnings reports showing revenue pressure and losses, framing Regent as a diversification lever. Today’s completion of the 51% Regent stake advances that previously signaled strategy from intent to execution.

Key Terms

iatf 16949, iso 9001, iso 14001, oems, +2 more
6 terms
iatf 16949 technical
"Regent-Feinbau ... is a certified manufacturing specialist (IATF 16949, ISO 9001, ISO 14001)"
An international quality management standard for companies that design and make parts for vehicles, built on a widely used quality framework and tailored to the automotive industry. Like a detailed recipe and inspection checklist that suppliers must follow, it signals consistent production, fewer defects, and eligibility for major auto contracts — information investors use to judge operational reliability, risk of costly recalls, and potential for steady revenue.
iso 9001 technical
"Regent-Feinbau ... is a certified manufacturing specialist (IATF 16949, ISO 9001, ISO 14001)"
ISO 9001 is an international standard for a company’s quality management system that sets out how the organization documents and controls its processes to deliver consistent products or services. For investors, certification is like a stamp saying the company follows repeatable, audited procedures—this can lower operational risk, improve efficiency and customer trust, and make performance more predictable over time.
iso 14001 technical
"Regent-Feinbau ... is a certified manufacturing specialist (IATF 16949, ISO 9001, ISO 14001)"
ISO 14001 is an international standard that describes how an organization should set up and maintain an environmental management system — essentially a formal playbook for reducing pollution, using resources wisely, and meeting environmental rules. For investors, certification signals that a company is actively managing environmental risks and costs, which can protect cash flow, reduce fines and cleanup liabilities, and preserve reputation and access to customers and markets.
oems technical
"Regent-Feinbau primarily serves OEMs directly, while also supporting Tier 1 suppliers"
OEMs, or Original Equipment Manufacturers, are companies that produce the main components or products that other companies use to build finished goods. For investors, OEMs are important because their performance can influence the supply chain, manufacturing costs, and overall market trends in industries like technology, automotive, and electronics. Their success often reflects broader economic health and consumer demand.
tier 1 suppliers technical
"primarily serves OEMs directly, while also supporting Tier 1 suppliers with reliable"
Tier 1 suppliers are companies that sell finished parts or systems directly to original manufacturers (the firms that sell the final product), acting like the lead contractors who deliver ready-to-install components. Investors care because these suppliers often have stable, large contracts, closer relationships and greater influence on product quality and delivery timing, so their performance can signal supply-chain health and affect the maker’s production and profitability.
projection welding technical
"Advanced welding (including drawn arc, projection, spot, and robotic welding"
Projection welding is a type of resistance welding that uses small raised points or “projections” on one part to focus electric current and pressure so a precise spot weld forms quickly and consistently. Think of it like using a hammer with a pointed tip to concentrate force exactly where you want a nail driven. For investors, it matters because it affects manufacturing speed, product reliability, scrap rates and capital needs, all of which influence costs and margins.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HONG KONG, March 5, 2026 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today announced it has completed its previously announced planned acquisition of 51% of the outstanding shares of German-based Regent-Feinbau Adermann GmbH ("Regent-Feinbau") from LeMALe Beteiligungs-GmbH ("LeMALe" or "Seller") on February 28, 2026 for a total purchase price of €662,000. €612,000 of the purchase price was paid in cash, and the remaining €50,000 was paid by the issuance of 64,851 of the Company's common shares to LeMALe, calculated based on the February 27, 2028 closing price of the Company's common shares on the Nasdaq Capital Market. Pursuant to the purchase agreement between the Company and Seller, such shares of the Company may not be sold, assigned, pledged or otherwise transferred by LeMALe until after March 31, 2027. The Company expects the acquisition to open significant manufacturing growth opportunities serving customers in the automotive and aviation industries. The current CEO of Regent-Feinbau, Matthias Bauer, will continue as the Managing Director of Regent-Feinbau.  

Founded in 1949, Regent-Feinbau (https://regent-feinbau.de/) is a certified manufacturing specialist (IATF 16949, ISO 9001, ISO 14001) for precision sheet metal components and welded assemblies made of aluminum, steel, and copper. With decades of experience and vertically integrated capabilities, Regent-Feinbau delivers high-quality, scalable solutions for demanding applications - from laser-cut parts to fully assembled functional units. Regent-Feinbau's core competencies include: Laser cutting and bending (efficient, high-precision processing using CNC press brakes and automated systems); Forming technology (flexible production with extender presses and CNC-controlled bending for complex geometries); Component assembly (complete systems with integrated fastening and joining processes); and Advanced welding (including drawn arc, projection, spot, and robotic welding, ensuring strong, repeatable joints across a wide range of materials). Regent-Feinbau primarily serves OEMs directly, while also supporting Tier 1 suppliers with reliable, production-ready components and assemblies across the automotive, commercial vehicle, aerospace, and industrial sectors.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, "We are very happy to add Regent into our group of companies and expect Regent's CEO Matthias Bauer to contribute meaningfully as a new partner given his successful technical and entrepreneurial background. Matthias is young, energetic and has built excellent relationships with leading German car companies. Regent is already a Tier 1 supplier to the leading car maker in Germany and also supports many Tier 1 suppliers, who supply other German car companies. In addition, Regent directly supplies a leading European aircraft manufacturer and is establishing additional aerospace programs, including component supply for the aviation interior segment."

"We had been trying very hard to find a suitable acquisition, and Regent was the most compelling fit over the near and long-term for our business and shareholders. The extensive due diligence process involved evaluating 10 potential acquisition targets over a 3 year time period. While this was a comprehensive and lengthy process, we are pleased with the outcome.  Regent was a big exception – it has been profitable during the last 3 years with average annual sales of approximately US$2.7 million and a high potential for future growth."

"We are confident that Regent, under the continued leadership of Mr. Bauer, will accelerate our company's strategic transition into a much more diversified manufacturer, while helping to build value for shareholders. The automotive and airplane industries provide a high potential for future growth. Covid and the tariffs reshuffled the worldwide economy and business is undergoing drastic changes – changes which initially severely hurt us but carry significant growth opportunities for a company of our size. We believe that the Regent acquisition is the first chance we have to pursue these growth opportunities, with likely additional growth catalysts to come for other potential opportunities we are working on."

"Taken together, our acquisition of Regent will strengthen our business and add additional depth to our management team, which is important for future succession planning as we focus on improving growth, profitability and shareholder value."

Matthias Bauer, Managing Director of Regent-Feinbau said, "Together with Highway Holdings, 2026 marks the starting point for building the next phase of Regent's growth. We are excited to join the Highway Holdings family and think it is the perfect fit. We were not looking to partner with anybody given the strength of Regent's operating business but the compelling fit with Highway Holdings and ability to drive Regent's growth made us reevaluate our options. With Highway Holdings, Regent immediately gets many compelling benefits, including an international footprint, even stronger supply chain and prestige of being a vital part of a Nasdaq-listed company."

"Due to increasing tariffs and protectionist measures, automotive manufacturers are seeking international suppliers capable of local-to-local supply in their key markets. With Highway Holdings, Regent gains international manufacturing capabilities and a strong local-to-local footprint."

"The presently depressed industrial situation in Germany, while challenging for many companies, also creates significant opportunities for Regent. Numerous suppliers with comparable product portfolios are under pressure and may exit the market. With Highway Holdings' support in Germany, China and potentially the United States in the future, Regent has an excellent opportunity to grow both in the short and long term."

"The acquisition also strengthens Regent's well-utilized tooling and engineering operations, enabling additional new projects, cost advantages and faster industrialization. Furthermore, together with Highway Holdings, Regent significantly strengthens its ability to execute production takeovers and outsourcing projects, combining additional industrial capacity with proven operational expertise, thereby accelerating growth in the coming years. I am very enthusiastic about what lies ahead. I would like to thank everyone who worked tirelessly to make this transaction happen in such a short time, and I congratulate Highway Holdings on a job well done."

About Highway Holdings Limited

Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar, and Shenzhen, China. For more information visit website www.highwayholdings.com.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.

Cision View original content:https://www.prnewswire.com/news-releases/highway-holdings-completes-acquisition-of-51-of-regent-feinbau-adermann-gmbh-302705232.html

SOURCE Highway Holdings Limited

FAQ

What did Highway Holdings (HIHO) pay to acquire 51% of Regent-Feinbau on February 28, 2026?

Highway Holdings paid a total purchase price of €662,000 for 51% of Regent-Feinbau. According to the company, €612,000 was paid in cash and €50,000 was settled by issuing 64,851 common shares to the seller.

How were the share consideration and transfer restrictions structured in the HIHO acquisition of Regent-Feinbau?

The seller received 64,851 Highway Holdings common shares valued at €50,000 with transfer limits. According to the company, those shares may not be sold, assigned, pledged or transferred until after March 31, 2027.

What are Regent-Feinbau's core capabilities and end markets relevant to HIHO shareholders?

Regent-Feinbau specializes in precision sheet-metal parts, welding and assemblies for automotive and aerospace OEMs. According to the company, its certifications and vertical capabilities support Tier 1 supply and aerospace component programs.

What financial scale did Regent-Feinbau report before the March 2026 acquisition by HIHO?

Regent reported average annual sales of approximately US$2.7 million over the prior three years. According to the company, Regent also remained profitable during that three-year period, supporting near-term commercial stability.

How does Highway Holdings expect the Regent-Feinbau acquisition to affect its manufacturing footprint and growth strategy?

Highway Holdings expects Regent to expand its manufacturing reach in automotive and aviation markets and enable local-to-local supply. According to the company, the acquisition adds engineering, tooling and Tier 1 relationships to accelerate growth.