Pierer Mobility AG has just announced the opening of negotiations pour restructure on this. The Austrian group must find several hundred million euros to secure its near future. Negotiations are therefore underway with the main shareholder Pierer Bajaj AG and the different creditorsin order to obtain a bridge financing. The manufacturer first wishes to find a temporary suspension agreement of his obligations with the creditors concernedin order to stop the bleeding during the discussions. A first step for a discussion that would allow restructure global debtparticularly with KTM AGwhich remains the main supplier of Pierer Mobility AG. Indeed, the firm specifies that as of June 30, KTM ensured 95% of turnover the Pierer Mobility AG. Ces liquidity needs are urgent for the company, since this new money must be integrated into the planning of the financial year 2025 of KTM AG. According to the group, discussions have just started and it is still too early to give more information.
Social and industrial restructuring
At the same time as this debt restructuring, the group has already embarked on a global restructuring who passes through elimination of several dozen jobs and one drastic reduction in productionin order to reduce inventory levels and of those of its distributors across the world. The company recently spoke out to assure its support for these same dealerswho bear part of this financial burden. The KTM brand must also evolve towards a more premiumwhile reducing its volumes. During the last Milan showthe company presented many new products at different displacement levels, while remaining evasive on some machines. Enough to throw a certain vagueness on the product plan which will actually happen in the showrooms and especially to what deadline.
What options for Pierer Mobility?
Beyond the product aspect, what could be the solutions of the group to ensure its future? The key lies with the group’s various creditors. The main shareholder Pierer Bajaj AGconsisting of Pierer Industry and the Indian manufacturer Bajaj Autowill he put his hand in his pocket? An increase in the capital of Bajaj Auto could upset the balance current and bring the group under the Indian flag. However, there is no indication that Bajaj would be willing to become more involved in the Austrian company. Other creditors include several bankswhich could also take a larger share of the capitalin one form or another, which would also modify the group’s shareholding. Finally, a third actor could appear in the discussion: the Chinese manufacturer CF Motowith which Pierer has a industrial partnership. The Chinese firm already produces motorcycles and engines in its factories for KTM. His financial means would allow him to enter the capital of the Austrian manufacturer. However, CF Moto has chosen to establish itself in Europe under his own name. A rapprochement with Pierer could open a large distribution network and a access to KTM, Husqvarna, GasGas and MV Agusta brandsall brought together within Pierer Mobility AG. Beyond these hypotheses, we must not forget that the main individual shareholder remains Stefan Pierer. The manager must therefore slicebut does it really have a room for maneuver ?
Swiss
