The rumors are true, guys. KTM has been saved, says parent company Pierer Mobility AG. Or at least, it's raised the money it needs to successfully go through with KTM restructuring.
In an ad hoc investor announcement dated Tuesday, May 20, 2025, the parent company states that "Pierer Mobility AG and KTM AG have received financing commitments subject to the execution of the requisite agreements, which will ensure that the quota payments to fulfill the restructuring plans of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH can be fulfilled on time by May 23, 2025."
Elsewhere in the announcement, it further notes the amount in question is approximately 600 million Euros, as we've previously reported. But where did the money come from? As we noted in a report yesterday, mega KTM investor Bajaj Auto took out a pretty large loan at a pretty coincidental time to fulfill this last-minute save.
Much like Pierer Mobility AG, Bajaj Auto is also a publicly traded company. As such, it has certain legal requirements for disclosures.
In one such disclosure, from May 19, 2025, and rather charmingly referred to with the official title of "Rumour Verification," the company noted that this notice is "with reference to various media reports published in the mainstream media on 18/19 May 2025," and went on to state that "said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is for the purpose of funding the restructuring of KTM AG."
It then goes on to state the following:
"In this regard, we would like to clarify that our wholly owned subsidiary, Bajaj Auto International Holdings BV, Netherlands ("Bajaj Auto BV"), is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG, pursuant to a plan approved by its creditors. Involvement by Bajaj Auto BV in the restructuring as well as arrangements in this behalf are being finalized and the Company will make necessary disclosures at the appropriate time in accordance with Regulation 30 of the Listing Regulations."
The notice is addressed to the BSE, the National Stock Exchange of India, and is signed by Rajiv Gandhi, Bajaj's company secretary and compliance officer. So, while there might be plenty of mysteries and conversations taking place behind closed doors, thanks to financial disclosure requirements, these aren't some of those.
It still remains to be seen what happens on May 23, 2025, but it does seem a bit like a foregone conclusion at this point. As always, we'll be sure to keep you informed on future developments in this story at RideApart.
