Bajaj to the rescue

[wessie]

https://www.nbcsports.com/motor-sports/news/bajaj-auto-ltd-secures-loan-for-ktm-ag

"Bajaj Auto Ltd, co-owner of KTM AG along with Stefan Pierer, has secured a one-year, $632 million loan to keep the company operating, according to Bloomberg via RacerX.com."

Presumably SP will be handing over his shares to Bajaj

 

[richardbd]

It may prove to be correct but I'm reading elsewhere that whilst Bajaj have secured the 12-month loan, they have yet to confirm its purpose.

If they fancy taking total control of KTM, this seems like a risky and expensive way of going about it. Wouldn't they be better just let it collapse and then stepping in at cents on the Euro? Or perhaps they think/know that there's an orderly queue forming outside the door preparing for that exact eventuality.

Either way, a 12-month loan doesn't exactly seem like a long-term solution...

Can
Road
Kick

 

[Eastmidsbiker]

Looks like KTM have been saved by the $600M loan as its been reported by some outlets now.

It may prove to be correct but I'm reading elsewhere that whilst Bajaj have secured the 12-month loan, they have yet to confirm its purpose.

If they fancy taking total control of KTM, this seems like a risky and expensive way of going about it. Wouldn't they be better just let it collapse and then stepping in at cents on the Euro? Or perhaps they think/know that there's an orderly queue forming outside the door preparing for that exact eventuality.

Either way, a 12-month loan doesn't exactly seem like a long-term solution...

Can
Road
Kick

Maybe, but Bajaj already own 49.9% so to let it fall apart would probably do more damage to their investment. KTM generally makes great bikes and deserves to survive, it just needs better management.

I suspect KTM's Austria presence in Mattighofen might be significantly reduced.

 

[richardbd]

I’m sure that is where the Bajaj loan will end up. FWIW I think they actually own 49.9% of the KTM holding company, which in turn only owns 75% of the actual KTM business - no doubt some mechanism that allowed Mr KTM to retain control.

It sounds like Bajaj will inject the money to settle the KTM debts at around 30 cents on the Euro. As the Bajaj loan is only for 12 months but the cash will flown straight out to the creditors, I still don’t really get what’s in for Bajaj that they couldn’t have got later for a lot less

There’s always an implicit assumption that bods playing with big numbers know what they’re doing but if they did, KTM wouldn’t be in this mess

Meanwhile, I’ve now heard of two KTM dealers trying to renege on signed bike sales and demanding more money. One report was little more than a fat bloke told me down the pub thing. The other direct from somebody I know so was definitely true.

I suspect this has a long way to run yet…