KTM to sell its 50.1 percent stake in MV Agusta
Rennie Scaysbrook | December 19, 2024
KTM’s 50.1 percent majority stake in MV Agusta is being sold by an administrator as Austria’s Financial Market Authority launches an investigation into Pierer Mobility Group (PMG). Facing a severe financial crisis, KTM has entered self-administration to avoid bankruptcy.
In recent weeks, KTM has laid off hundreds of employees, with more redundancies expected. Workers have also been informed that they will not receive their salaries over Christmas.
The love affair between KTM and MV Agusta has been a short one indeed.
Speculation had already suggested that KTM might sell its majority stake in MV Agusta, acquired in 2022. This has now been confirmed, as an Austrian court announced that the administrator will proceed with the sale of PMG’s 50.1 percent stake in the Italian motorcycle manufacturer.
MV Agusta has been plagued by similar overproduction issues as KTM. Reports indicate that 2,000 unsold units are sitting in a warehouse in Austria, while employees in Italy have agreed to salary reductions.
KTM is also under investigation by Austria’s Financial Market Authority regarding possible violations of disclosure regulations. The inquiry, based on a report by the Austrian Press Agency, focuses on the period from May to November, during which PMG revised its business forecasts and underwent management restructuring.
Earlier this year, KTM’s board of directors was reduced from six members to two as the full extent of its financial difficulties remained unclear. A creditors’ meeting scheduled for Friday will determine whether KTM can continue operating.
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