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This doesn't seem like a good thing.
https://www.pierermobility.com/en/newsroom/eqsfeed/2962832?type=adhoc
PIERER Mobility AG: Loss of half of the share capital
From ChatGPT 4/7/2025
Absolutely — here’s a clean unpack of what’s happening with PIERER Mobility AG, the parent company of KTM AG, from a financial and strategic lens.
🧨 The Situation: Loss of Half the Share Capital
2024 was a brutal year: PIERER Mobility experienced a significant operational downturn, including one-time restructuring costs.
The result? By December 31, 2024, the company's equity turned clearly negative, triggering a legal requirement to convene an Extraordinary General Meeting (EGM) under EU financial law.
This means they've burned through over 50% of their share capital, which is a massive red flag — both legally and financially.
💰 The Plan: Two Capital Increases (Cash + In-Kind)
To stabilize and restructure the company, the following capital measures are being proposed:
1. Cash Capital Increase – €150 Million
Goal: Raise €150M by issuing new shares at €7.50 per share.
Who can buy: Current shareholders have subscription rights (they can buy new shares to avoid dilution).
Backup Plan: If current shareholders don’t buy in, Pierer Bajaj AG (main shareholder, partnered with Bajaj Auto of India) will step in and purchase leftover shares.
Legal Requirement: A full capital market prospectus will be issued (approved by regulators) before this is offered publicly.
2. Capital Increase in Kind – €200 Million
This increase involves converting loans into equity (no new money coming in, just accounting shifts):
Pierer Bajaj AG has already loaned €150M for production ramp-up.
A final €50M loan was issued on April 3, 2025.
All €200M in loans will be turned into shares at €7.50/share, giving Pierer Bajaj even more control over KTM.
No shareholder rights here — only Pierer Bajaj AG can participate, diluting others.
🧮 Dilution Effect: ~2.4x Increase in Share Capital
If both increases go through:
Existing shareholders’ ownership stakes will be significantly diluted unless they buy into the new share offer.
Pierer Bajaj AG will likely become even more dominant — tightening control over KTM’s future.
⚠️ Key Implications for KTM and Riders Like You
KTM brand stability is being tested at a deep financial level.
Corporate consolidation: More power is shifting to Pierer Bajaj AG and indirectly to Bajaj Auto, an Indian giant.
Future product innovation, race team investment, and support services could be constrained or reshaped.
Ownership dilution means less diversity in decision-making — potentially more "corporate" moves and fewer rider-centric decisions.
🧭 What’s Next?
April 25, 2025: Extraordinary General Meeting in Munderfing, Austria — the fate of these capital measures will be decided.
Shareholders will vote — and likely approve the plan unless blocked in court (possible but rare).
The €7.50/share price is likely below current valuation — indicating distress.
Shouldn't be a problem, they would have known this long before it happens with interest running away as it did. Don't think they had to write down stock to cause it.
With all the loans converted to equity, and additional share issue their share holder equity will probably be reset if it hasn't already. BoD assumes personal risk for any liability brought on during the period when equity is negative if they don't setup a control balance sheet within a certain time frame.
if only there was a mega thread for this topic..
you used chatgpt for that 😂😂😂😂
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lmfao, maybe our resident KTM copy/paste know it all/know nothing @Beagle will come along and tell you what it means. I would but I am sick of being told I am a clueless fool by clowns.
Absolutely!!! AI is a tool that only requires discernment by the user!! The FUTURE is here - jump on board as the bus is leaving soon to a whole new world full of wonderous oppurtunities!!
Thought the can would get kicked down the road far enough until November.
LOL! Waaaahhhhhh.......
I couldn't find that thread anymore.
This is just the formal announcement and accompanying scheduling of shareholder vote of the round of capital raising that they said would occur during the restructuring hearing.
So not really new information, except now we have a specific date it will be voted on (and will pass because Pierer and his partners own the majority of PMG shares)
Surprised it took you this long to get here. Car trouble? 🤡
Nah, I am fine. You may want to check on the Beagle seeing he had to eat all that shit he slung at me. You better check you shoe, sure as hell stepped in it.
When the dust settles…and this is all in the rear-view mirror…
Who’s going to own the majority of KTM…?
My guess, S. Pierer via some new entity…that is…”if”…again, if…PM gets lost in translation.
Stocks continue to drop. They'll keep burning through cash while bikes do not sell in this climate. KTM USA "We're good".
Dear Vital Oracle,
talking about manure of the bovine kind, would you care to assess how these claims of yours turned out?
PMG can't sell shares!
Nobody will invest in PMG and certainly not Bajaj!
The banks won't accept restructuring, they're getting 100%!
I was so looking forward to reading your explanations about all those things you insisted would never happen. Alas, you will deprive us of your unrivalled insight, such is life.
Back to the topic, as Dirty points said, they're just putting into action the plan extensively presented back in January, approved by the board and confirmed at the end the restructuring process.
More analysis from AI.....the trend is unmistakably down, and this chart gives a sharp visual confirmation of how serious PIERER Mobility AG’s financial slide has been.
🔍 Key Observations from the Chart
Stock Price Today: CHF 14.00
52-Week Range: CHF 6.10 – 44.10
Current Position: Hovering just above the lower third of the range.
YTD Bounce (early 2025): Small recovery attempt, but lost steam fast by April.
Overall 12-Month Trend:
Sharp decline from ~CHF 44 in early 2024.
Stabilized briefly mid-2024.
Another hard leg down in Q4 2024 — likely tied to restructuring costs and plummeting equity.
Weak momentum in 2025 despite temporary recovery.
🧩 What This Suggests
Investors have priced in risk — the market is bracing for restructuring outcomes and dilution.
The €7.50 issue price for new shares in the capital raise is close to the floor, reinforcing that leadership expects ongoing pressure.
The bump in early 2025 likely followed rumors or initial restructuring news — but confidence hasn’t held.
⚙️ For KTM Riders Like You
Behind-the-scenes R&D and product refinement may already be feeling the squeeze.
If the cash capital increase fails to attract enough public investors, Pierer Bajaj AG may step in with more control, potentially shifting brand direction.
Race team budgets, event sponsorships, and product launches could be deprioritized in favor of financial survival.
It's not relevant. Have you missed what the orange clown has done last 4 weeks and what has happen to the stock market?
Some is down 20%, most I's down 10%. Companies in that stage typically drops more than average. But they also rebound faster.
Pit Row
I use ChatGPT for so much more then I ever thought, from work to personal. Had a Maytag dryer motor go out… ChatGPT walked me through step by step what to do and it was perfect. No scrolling YouTube or google… absolutely incredible.
Ok back to KTM flame
And this is after the rebound today, which Europe will see tomorrow. So my original point stands.
Orange clown, being just that, a clown. Pretty clear from the markets.
For someone spouting info on the down market...looks like you missed today's news? Something had to be done about the trade deficit and someone finally had the balls to do something about it,
Stil people think clown has a masterplan? He doesnt.
Those 2.5% Europe is charging in average customs ain't going to make a fucking dent into the US debt situation if it's removed or zeroed out. Going to 10x that will ruin ordinary US peoples economy.
He is a clown, today just shows it again. 90 day pause, why? Nothing new has come to see the day more that countries are not folding over so he is fucked. That's not balls, that's lack of computing power.
You don’t seam to understand what’s really happening. This is a hard reset to the current geopolitical and geoeconomic environment with specific focus to China. It’s easy to look at things on the most superficial level. What the orange clown is doing goes much deeper. Let’s see how things look in another 6 months. I’m glad the orange clown has the balls to do what should have been done decades ago.
No, in 12m everything is back to as it was, or a version of it. But the balance is not going to change. China can fuck over US if they want. They can send US defense industry 40y back if they just stop delivering minerals.
There will not be a major reset.
What will happen is that unemployment will continue to rise in US, the debt will go up, rates will increase because no one can trust US. Companies and countries will work to become more independent of US, hense less investments into the country. Just look at Germany. They will pull the full gold reserve that's been there since ww2. It's major fuck up.
Doge will on paper save hundred million but cripple the government for 10 years and in reality have cost it billions and billions with the chaos it creates. Musk has realized he can't do anything substantial there and the the clown will drive US companies and economy into the ground and that is also why he is leaving the ship when it's now sinking. He comprehend stuff a little quicker than Trump 😅
Go delete some more posts in the bankruptcy thread to CYA...
Totally understand your skepticism. Lets bookmark this discussion for 6 months from now and see what the facts show us. 12 months even better.
ChatGPT even has a sense of Humor
The Orange Man’s Tariff Plan: Wrenching Global Trade into Alignment
Trump’s back on the throttle with a bold-as-ever plan: scrap the whole tangled mess of global tariffs and slap a universal import fee on everything. No more lopsided trade deals. No more special treatment for China. Just one flat rate for all imports—level the global track and call it Fair Trade for the WORLD.
Why it matters (even to us dirt bikers):
Tariffs hit everything from parts to plastics. When other countries jack up prices on U.S. goods and we just take it, it’s like racing a 125 in a 450 class—underpowered and outgunned. This plan says: gear up or get out of the way.
What’s under the plastic:
Flat Tariff = Simple. No more hidden deals or loopholes.
Pressure = Leverage. Forces countries to play fair or lose access to the U.S. market.
Home Turf = Jobs. Could bring manufacturing back—more real work, less reliance on cheap overseas junk.
Critics say: It’ll start a trade war.
Supporters say: We’ve already been in one—we just showed up unarmed.
And here’s the jab:
This plan is basically a wrench in the gears of globalism—the same machine that’s been trying to seize our spark plugs, swap our gas for soy lattes, and force us all onto electric pit bikes with geo-fencing.
Good luck. When they end up being wrong they just go back and delete the posts like @Beagle .
Oh Vital Oracle, why do you keep doing this to yourself?
I don't know why I would delete posts where I disagree with you, you seem completely oblivious to the fact that pretty much anything you argued wouldn't happen, well, it just did.
Not gonna ruin another thread so I'll limit the back and forth. Don't worry it's ok if you missed me so much that you can't stop quoting me.
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