KTM denies reports Bajaj will increase their stake in the business

KTM denies reports Bajaj will increase their stake in the business

 

KTM denies reports of Bajaj takeover

By Chris Newbigging -

General news

 12 February 2010 09:34

KTM has denied claims by an Indian news agency that it has invited 30% stakeholder to increase it’s stake to 90%.

The Austrian firm says that current controlling shareholder CROSS Industries will continue to hold more than 50% of shares in KTM, meaning there will be no change in leadership of the company.

Earlier reports had suggested Indian company Bajaj, one of the world’s biggest two-wheeled manufacturers, would be increasing it’s stake initially to 51%, and later to 90%.

The full KTM statement reads:

“Back on track”. That is the best way to describe the current situation of the KTM Group.

After the most difficult financial year in the company’s history (2008/2009) KTM has returned to the profit zone following immediate and successful restructuring measures.

A turnover of €110.7 million has resulted in a clear profit of € 3.6 million for the first quarter of the current financial year.

‘KTM has managed to increase its market share in contrast to the still declining trend in the motorcycle market.

Altogether 17,056 motorcycles were sold in the first quarter 2009/10 (- 15% compared to the previous year). Inventory at both KTM and its dealers was reduced by more than one third.

‘Following the positive company development, the KTM Power Sports AG has issued an invitation to shareholders to attend an extraordinary general assembly on February 26, 2010.

The most important item on the agenda of the meeting is a resolution to further increase capital via the main shareholders by an additional € 30-40 million.

‘This planned measure will not result in any changes to the industrial leadership of CROSS Industries at the KTM Powersports AG.

The CROSS Industries will continue to hold more than 50% of the shares in KTM Powersports AG. Thus the management of KTM will continue to pursue its successful chosen course, also in the future.’