U.S. drone and robotics company Red Cat Holdings Inc. on Monday launched a takeover offer for Austrian engine manufacturer Steyr Motors, which values the company at around 204.8 million euros ($230.2 million).

Red Cat will launch a voluntary public purchase offer for 39.00 euros per share in cash. The price is at a 29% premium to Steyr's closing share price on Friday. Steyr Motors shares were up 19% at 36.30 euros in early European trading.

Red Cat rose over 8% in pre-market trading.

The acquisition is supported by Steyr's largest shareholder B&C Group, which holds a 15% stake in the company, Red Cat said. Steyr's supervisory board said it sees "significant strategic potential" in the takeover.

The transaction is subject to conditions including foreign direct investment approvals, the companies noted.

Red Cat said it intends to maintain Steyr's headquarters, manufacturing operations and research and development presence in Austria.

"For our shareholders, the all-cash offer is a chance to realize their investment in cash today. I stand behind this step, and I intend to tender my own shares alongside them," said Steyr Motors Chief Executive Officer Julian Cassutti.

Red Cat and Steyr Motors previously held non-binding talks for a potential transaction, which ended in July. Talks subsequently resumed and have now led to an all-cash offer.

The acceptance period will end on December 18. Red Cat expects the takeover to complete in the first half of 2027.