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

Rhea-AI Summary

Highway Holdings (Nasdaq: HIHO) signed a letter of intent to acquire 51% of Regent-Feinbau Adermann GmbH, a German precision sheet‑metal manufacturer, primarily for cash and a smaller portion of unregistered shares.

The proposed deal targets a close by end of March 2026 and remains subject to due diligence, execution of a definitive purchase agreement, and customary closing conditions. Regent-Feinbau (founded 1949) holds IATF 16949, ISO 9001 and ISO 14001 certifications and serves OEMs and Tier 1 suppliers across automotive, commercial vehicle, aerospace and industrial sectors.

Highway said the acquisition would add thick sheet metal cutting, bending and welding capabilities to its Chinese metal component division (Nissin Shenzhen). Highway reported approximately $5.3 million cash (about $1.20 per share/b).

Positive

• 51% proposed acquisition of Regent-Feinbau
• Target close by end of March 2026
• Regent-Feinbau holds IATF 16949, ISO 9001, ISO 14001 certifications
• $5.3 million cash on hand (~$1.20 per share)

Negative

• Transaction is based on a letter of intent and is not guaranteed
• Deal subject to due diligence and execution of a definitive agreement
• Purchase includes a smaller portion of unregistered shares, implying potential shareholder dilution

News Market Reaction

+50.60% 2614.9x vol

40 alerts

+50.60% News Effect

+110.7% Peak in 2 hr 10 min

+$3M Valuation Impact

$10M Market Cap

2614.9x Rel. Volume

On the day this news was published, HIHO gained 50.60%, reflecting a significant positive market reaction. Argus tracked a peak move of +110.7% during that session. Our momentum scanner triggered 40 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $10M at that time. Trading volume was exceptionally heavy at 2614.9x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Stake to acquire: 51% China auto market size: $660 billion China auto growth: over 2% +5 more

8 metrics

Stake to acquire 51% Planned ownership of Regent-Feinbau Adermann GmbH via LOI

China auto market size $660 billion Estimated current size of Chinese automotive market

China auto growth over 2% Projected 5-year growth rate for Chinese automotive market

Sheet metal share $50 billion per year Estimated annual sheet metal component business in autos

Sheet metal growth 2% Estimated annual growth rate for sheet metal component business

Annual growth value $1 billion per year Estimated annual incremental growth in sheet metal components

Cash and equivalents $5.3 million Approximate cash and cash equivalents cited to fund acquisitions

Cash per share $1.20 per share Approximate cash and equivalents per share mentioned by company

Market Reality Check

Price: $0.9307 Vol: Volume 295,344 vs 20-day ...

high vol

$0.9307 Last Close

Volume Volume 295,344 vs 20-day average 28,071 (about 10.52x normal activity) ahead of this acquisition LOI. high

Technical Shares at $0.83 are trading below the 200-day MA of $1.61 and 59.51% under the 52-week high of $2.05.

Peers on Argus

HIHO was up 1.17% while close peers were mixed: SGBX -3.27%, AP -4.52%, TPCS +1....

HIHO was up 1.17% while close peers were mixed: SGBX -3.27%, AP -4.52%, TPCS +1.32%, TG +0.27%, suggesting a stock-specific reaction rather than a broad metal fabrication move.

Historical Context

3 past events · Latest: Dec 15 (Negative)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Dec 15	Q2 FY26 earnings	Negative	-10.9%	Sales decline and swing to net loss versus prior-year profitability.
Sep 11	Q1 FY26 earnings	Neutral	+2.3%	Modest profit on lower sales while preserving strong cash position.
Jul 01	FY25 results	Positive	-4.6%	Return to profitability and 17.5% sales growth versus prior year.

Pattern Detected

Recent earnings news often led to downside moves, with one notable selloff after weaker Q2 results despite a solid balance sheet.

Recent Company History

Over the last few quarters, Highway Holdings reported mixed fundamentals. Q4 and full-year 2025 results showed recovery, with net sales of $7.4M and a return to net income of $106,000. However, Q1 and Q2 fiscal 2026 updates highlighted declining sales and margin pressure, culminating in a Q2 net loss of $0.37M. Despite maintaining cash above $5.6M, shares fell 10.93% after the latest Q2 report. Today’s planned 51% acquisition fits the earlier-stated M&A and China-market diversification efforts.

Market Pulse Summary

The stock surged +50.6% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +50.6% in the session following this news. A strong positive reaction aligns with the strategic nature of this planned 51% acquisition and the company’s earlier-stated M&A and China-market diversification goals. With shares trading 59.51% below the 52-week high and well under the $1.61 200-day MA, investors previously priced in operational weakness. Sustainability of any surge could depend on closing the deal on the stated terms and demonstrating earnings contribution.

Key Terms

letter of intent, unregistered shares, iatf 16949, iso 9001, +3 more

7 terms

letter of intent financial

"announced it has signed a letter of intent ("LOI") with LeMALe"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

unregistered shares financial

"primarily for cash and a smaller amount of the Company's unregistered shares"

Unregistered shares are company stock that was issued without going through the usual public registration process under securities law, meaning they carry legal limits on when and how they can be sold. For investors this matters because these shares are often harder to trade and may need to be held for a set period or meet specific conditions before sale, which affects liquidity, valuation and the timing of any potential gains or losses—think of them as tickets that aren’t yet cleared for resale.

iatf 16949 technical

"Regent-Feinbau is a certified manufacturing specialist (IATF 16949, ISO 9001"

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

"specialist (IATF 16949, ISO 9001, ISO 14001) for precision sheet metal"

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

"specialist (IATF 16949, ISO 9001, ISO 14001) for precision sheet metal"

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"

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.

m&a financial

"and ongoing M&A and China-market diversification efforts."

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

AI-generated analysis. Not financial advice.

12/23/2025 - 07:00 AM

HONG KONG, Dec. 23, 2025 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today announced it has signed a letter of intent ("LOI") with LeMALe Beteiligungs-GmbH ("LeMaLe" or "Seller") to acquire 51% of German-based Regent-Feinbau Adermann GmbH ("Regent-Feinbau") primarily for cash and a smaller amount of the Company's unregistered shares.

The proposed acquisition, which targets a close by the end of March 2026, remains subject to the completion of due diligence, negotiation and execution of a definitive purchase agreement, and satisfaction of customary closing conditions. There can be no assurance that the parties will enter into a definitive agreement or that any transaction will be consummated.

Founded in 1949, Regent-Feinbau 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 extremely excited to have signed a letter of intent to acquire 51% of Regent-Feinbau. The acquisition is part of our short and long-term strategy to reinvigorate our OEM business, which has an urgent need to replace customers whose revenue contribution has declined or halted due to the global business challenges entering and exiting COVID. Regent-Feinbau's experience with automotive customers and that company's excellent capabilities, which allows them to be a Tier 1 supplier to companies such as AMG Mercedes Benz, will have a lot of value for our Chinese metal component division, Nissin Shenzhen, in targeting the Chinese automotive market.

The Chinese automotive market is one of the automotive markets left with a positive growth rate, which according to third party estimates currently is about $660 billion with a projected growth rate of over 2% over the next 5 years. The percentage of sheet metal in a car is estimated to be about 8% to 12%. The average sheet metal component business is therefore roughly $50 billion per year, with a 2% growth rate or about $1 billion per year.

While Highway Holdings' history in China spans over 35 years, the Company has never directly targeted the local Chinese market, with the exception of supporting our international OEM customers that have a local Chinese presence. We view the Regent-Feinbau transaction as a significant opportunity, as prior to a Regent-Feinbau acquisition we could not offer thick sheet metal cutting, bending and welding to potential customers. Regent-Feinbau will expand our portfolio and add these sought after capabilities and experience to our company."

Mr. Kohl added, "Regent-Feinbau's business in Europe is also expected to grow with the help of our know-how and experience, allowing it to approach high volume component businesses they could not previously target because of a lack of resources. These synergies are highly valuable, which is why we are so excited about the potential positive impact of this acquisition."

"Importantly, Regent-Feinbau is only the first step in our M&A strategy. We are currently evaluating  additional transactions in Germany that we have identified and evaluated over the last 24 months."

"We believe that we have a very strong financial foundation to acquire Regent-Feinbau and potentially other targets, with substantially no debt and approximately $5.3 million in cash and cash equivalents, representing approximately US$1.20 cash per share."

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.

View original content:https://www.prnewswire.com/news-releases/highway-holdings-plans-to-acquire-51-of-regent-feinbau-adermann-gmbh-302648514.html

SOURCE Highway Holdings Limited

FAQ

What exactly did Highway Holdings (HIHO) announce on December 23, 2025?

Highway announced it signed an LOI to acquire 51% of Regent-Feinbau, primarily for cash plus a smaller amount of unregistered shares.

When is Highway Holdings (HIHO) targeting to close the Regent-Feinbau acquisition?

The company is targeting a close by end of March 2026, subject to due diligence and a definitive agreement.

How will the Regent-Feinbau deal affect Highway Holdings' operations in China (HIHO)?

Highway expects Regent-Feinbau's thick sheet metal cutting, bending and welding capabilities to expand offerings for Nissin Shenzhen in the Chinese OEM market.

What certifications and markets does Regent-Feinbau serve relevant to HIHO investors?

Regent-Feinbau holds IATF 16949, ISO 9001, ISO 14001 and serves automotive, commercial vehicle, aerospace and industrial OEMs and Tier 1 suppliers.

How is Highway Holdings (HIHO) funding the proposed acquisition?

The announcement says the acquisition is primarily for cash with a smaller portion paid in the company's unregistered shares.

Does Highway Holdings (HIHO) have cash available for acquisitions?

The company reported approximately $5.3 million in cash and cash equivalents, about $1.20 per share.