KTM puts MV Agusta shares up for sale: Austrian crisis continues

Bologna, 19 December 2024 – Investigations in Austria, financial reorganisation plan, sale of shares in MV Agusta. KTM is experiencing an unprecedented crisis, so much so that some still insinuate doubts about its participation in the 2025 Moto GP world championship. For now KTM confirms the motorsport project, therefore also the top class, but Pedro's manager Acosta he said he was worried about the company's situation, especially in relation to the developments of the motorcycle that risks not keeping pace with its rivals. Meanwhile, the Austrians are under investigation and are about to sell their shares of MV Agusta, the majority of which they had acquired not long ago, in March 2024.  

Bankruptcy Trustee at Work

MV Agusta is about to change hands again. The Varese-based company is not considered a key asset by KTM, which is in financial crisis, so a bankruptcy trustee is working on selling the shares held by the Austrians, who completed the acquisition of 50,1% of the company in March 2024, after having entered with 2022% in November 25. The entire majority shareholding will now change hands, the Upper Austrian court has said, with a bankruptcy trustee working to find buyers. There could even be a sensational return of Timur Sardarov, the old owner before the sale to KTM. In recent days the Austrians had stated that Agusta was not a main asset, but the Italian company had responded with numbers, with 4000 motorcycles sold in 2024 and an annual growth of 116% and a volume reached in July already equal to that of 2023. On Motorsport.com, however, there is talk of 2000 unsold motorcycles that would be stuck in Austrian warehouses, with scaled-down production and a 20% cut in employee salaries. It doesn't end there, because the crisis of KTM, with almost 3 billion in debt, is not going unnoticed in Austria, with institutions investigating possible violations of the rules, especially considering that the company is listed on the stock exchange. The parent company, namely Pierer Mobility AG is under the scrutiny of the FMA, the Austrian Financial Market Authority. In short, not a good situation. In the meantime, Pierer Mobility is working on a financial restructuring plan with several partners, both new and existing. Translated, one could say that KTM is looking for funds to overcome the crisis: “PIER Mobility AG commissions Citigroup Global Markets Europe AG to reorganize its ownership structure,” the note reads. “PIER Mobility AG is currently in discussions with potential strategic and financial investors. These include both existing partners and new strategic and financial investors. Citigroup Global Markets Europe AG has been commissioned today to support this process in a structured, transparent and efficient manner, in the interests of all stakeholders. The aim of the investment process is for investors to subscribe to a capital increase in cash or financial instruments of PIERER Mobility AG. These funds will be used to strengthen the PIERER Mobility Group, in particular KTM AG. In order to complete the structured investment process, it will be necessary to convene a shareholders' meeting in due time to approve the relevant resolutions." KTM's salvation depends on this. Read also - Moto GP, Martin happy with the new Aprilia: "The potential is good"