KTM to propose a capital increase

While the Indian daily The Economic Time announced at the end of the week that the giant Bajaj was about to become the majority shareholder of the Austrian manufacturer KTM – a rise in power presented as essential for the survival of the orange brand, which is encountering certain difficulties following to market collapse

While the Indian daily The Economic Time announced at the end of the week that the giant Bajaj was about to become the majority shareholder of the Austrian manufacturer KTM – a rise in power presented as essential for the survival of the orange brand, which is encountering certain difficulties following to the collapse of the all-terrain market in the United States and Europe – KTM immediately reacted by issuing a press release on the official websites of its subsidiaries.

Annoyed by what turns out to be only baseless allegations, the orange brand officially denies this information too hastily taken up by some colleagues: the press release, which takes stock of the manufacturer’s economic situation, reaffirms KTM’s desire to ” take center stage on two-wheelers … under the Austrian banner !

KTM is therefore "back on track" ("Back on track" or "on the rails", Editor’s note), indicates the Austrian manufacturer, believing that "this is the best way to describe the current situation of the KTM group. The most difficult financial year in its history (2008/2009), KTM returned to profit thanks to the immediate and successful restructuring measures undertaken. Turnover of 110.7 million euros resulted in a net profit of 3.6 million euros during the first quarter of the current fiscal year ".

"While the motorcycle market continues to decline, KTM has managed to increase its market share", continues the orange brand: "in total, 17,056 motorcycles were sold during the first quarter of 2009/10 (- 15% by compared to the previous year). At the same time, stocks at KTM and its dealers were reduced by more than a third. Given the positive development of the company, the KTM Power Sports AG team decided to invite its shareholders at an extraordinary general meeting on February 26, 2010. The most important item on the agenda is a resolution aimed at increasing the capital, via the main shareholders, by approximately 30 to 40 million euros ".

"This planned measure will not lead to any change in the status of Cross Industries (the Austrian holding company which, according to its official website, held 48.5% of KTM Power Sports AG in October 2009) at KTM Power Sports AG", assures the manufacturer: "Cross Industries will still hold more than 50% of the shares of KTM Powersports AG. Thus, the managers of KTM continue on the path of success they have chosen for the future".

To be continued: stay connected !

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