Looking for up to 900 million euros in fresh capital

Various financial instruments

But the fresh capital will predominantly flow through the listed parent company Pierer Mobility. “Especially at the level of the (insolvent) KTM AG, a short-term capital injection will be necessary to meet the quota in the restructuring plan,” it says in the AGM documents. “Raising debt and equity capital will therefore be a key challenge for Pierer Mobility AG in the coming months in order to provide its important subsidiary KTM with supportive capital.”

The board of directors is to be authorized to issue financial instruments, in particular convertible bonds, participating bonds and participation rights with a total nominal amount of up to 900 million euros, which also grant the subscription and exchange rights to acquire up to 16.89 million (new) shares in Pierer Mobility can, it goes on to say. The fresh capital should be equipped in such a way that it can be reported as equity. The existing shareholders, including the free float (25.73 percent of the shares), are to be excluded from subscription.

Pierer Mobility says that without excluding the subscription right, it would not be possible to react quickly and flexibly to the special requirements of investors. The KTM parent primarily wants to attract institutional and other professional (international) investors to get involved.

Small investors angry

“I think that this is part of the rescue measure for KTM,” says Florian Beckermann from the Association for Investors (IVA) to the KURIER. “I don’t know if funding at KTM level would be enough. But it must be clear to us as free float shareholders that if KTM is rescued, we will be diluted and our money will be gone.” Postscript: “It would be a matter of fairness to offer us to go along. Money has no meaning.”

Only time will tell whether the up to 900 million euros in fresh capital will be enough to save KTM. KTM needs a total of around 540 million euros for the renovation plan quota alone (30 percent).