Pierer Mobility Finds Funding

Yesterday, Pierer Mobility AG, the parent company of KTM, notified that it has received several offers from investors as part of the investor process structured by Citigroup Global Markets Europe AG.

Understandably, the investors have not been revealed as discussions are ongoing. However, the media had speculated that the investors may be India-based Bajaj Auto and China-based CF Moto, both of whom have long-term partnerships with KTM. China-based investment group FountainVest may be another suitor.

However, most importantly, Pierer says that the finances offered would finance only 30 percent of the restructuring requirements of KTM AG. That’s not very encouraging, and these investors are FIs offering debt.

Impact

This is a developing story from last year, and we expect many more months of upheaval before the issue settles down. In some ways, KTM is too big to fail as it is interconnected to so many other industrial entities within Europe and outside. Bajaj and/or CF Moto will have to step in to save Pierer Mobility, but they would like to do things on their terms.

We have been extensively covering the issue in our previous posts.

What went wrong with KTM? – InsightEV

Pierer Mobility AG (KTM) has filed for judicial restructuring, a step away from bankruptcy. Sales is slow, marketshare is down, and they are sitting at manhy months of inventory. In the bigger picture, it indicates how fragile the European two-wheeler industry is.

InsightEV InsightEV – Global Electric Mobility

KTM Enters Self-Administration – InsightEV

KTM caused tremors in the motorcycling world by applying for judicial restructuring. The company cannot repay loans due in the near term because of unsold inventory. This is shocking for a motorcycle manufacturer that happily distributed dividends till last year.

InsightEV InsightEV – Global Electric Mobility

Pierer Mobility Replaces Chairman – InsightEV

The KTM crisis continues to unfold and Pierer Mobility has restructured the board, replacing the chairman.

InsightEV InsightEV – Global Electric Mobility

KTM is in worse shape than we reported – InsightEV

Pierer Mobility's problems are even more serious than estimated before. The unsold inventory at KTM is likely a year's worth of sales.

InsightEV InsightEV – Global Electric Mobility