KTM’s insolvency administrator puts shares of MV Agusta on sale

An insolvency administrator has put KTM’s shares in MV Agusta up for sale, as the Austrian auto giant continues to reel in from a financial crisis.

KTM’s parent company Pierer Mobility AG had acquired a 25.1 per cent stake in MV Agusta in November 2022, before taking over the majority of the company in March of this year.

Now, its entire 50.1% stake in the Italian motorcycle company is being sold, according to an announcement made by a regional court in Ried im Innkreis in Upper Austria on 17 December.

The administrator is also selling all shares in MV Agusta Services as part of insolvency proceedings against KTM.

Rumours suggest that former owner Timur Sardarov may be interested in buying back shares in MV Agusta in order to regain control of the company.

Like sister brand KTM, MV Agusta has also suffered from overproduction in recent months, with around 2,000 unsold motorcycles believed to be lying in warehouses in Austria. Production is set to be scaled back to match the lower demand.

MV Agusta’s declining fortunes have also affected employees in Italy. The union and management have already agreed on a solidarity pact, which includes a 20 per cent salary cut. What will happen next at its headquarters in Varese is currently unclear.

More changes at Pierer Mobility

Meanwhile, this week, Pierer Mobility announced that Citigroup Global Markets Europe has been commissioned to reorganise its ownership structure.

In a statement, it said: “Pierer Mobility AG is currently holding talks with potential strategic investors and financial investors. On the one hand, these are existing partners, and on the other hand, talks are also being held with new strategic investors and financial investors.

“In order to carry out this process in a structured, transparent and efficient manner in the interests of all stakeholders, Citigroup Global Markets Europe AG was today commissioned to support this investment process.

“The aim of the investment process is for investors to subscribe to a necessary cash capital increase or financial instruments of Pierer Mobility AG. These cash resources are to be used to strengthen the Pierer Mobility Group, in particular KTM AG.”

Investigation launched

However, there is more trouble brewing for KTM. According to a report by the Oberosterreichische Nachrichten, which was also confirmed by the Austria Press Agency, the Financial Market…