Highway Holdings shares surge 62.65% premarket after signing LOI to acquire 51% of German sheet metal firm to target China's $660B auto market.

Highway Holdings surged 62.65% in premarket trading following the announcement of a letter of intent to acquire 51% of German precision sheet-metal manufacturer Regent-Feinbau. The proposed $5.3 million cash-and-share deal, targeting closure by late March 2026, aims to expand the company’s capabilities in thick sheet metal processing—critical for automotive and industrial applications—and position its Chinese division, Nissin Shenzhen, to tap into China’s $660 billion automotive market. CEO Roland Kohl highlighted the strategic value of Regent-Feinbau’s Tier 1 supplier experience and vertically integrated manufacturing, aligning with Highway Holdings’ goal to reinvigorate its OEM business amid post-pandemic market shifts. The acquisition leverages the firm’s debt-free balance sheet, with $1.20 in cash per share, to drive growth in both European and Chinese markets.