KTM share value boosts amid hope of fresh investment

KTM’s hopes of surviving its financial crisis have been dealt a boost by increased confidence from prospective investors in the brand’s restructuring process.

The Austrian manufacturer - Europe’s largest motorcycle maker - entered into self-administration before Christmas 2024 in a bid to stave off bankruptcy amid debts of a confirmed €1.8 billion.

While the first creditors hearing on 20 December offered a positive outlook for the survival of the company, the report did also state that a “planned” withdrawal from MotoGP would be taking place.

KTM has confirmed it will continue racing in 2025, with the “planned” exit set for 2026 - though this is a very fluid situation right now.

Other measures that have taken place have been a suspension temporarily of manufacturing, the laying off of over 700 employees, while its majority stake in MV Agusta has been put up for sale.

According to a report from GPOne, KTM needs to find €540 million in investment by 25 February - when a vote by creditors on its restructuring process will be held.

However, there is hope for KTM as it gains interest from significant investors, with its share value also rising to almost 70 percent over the last month.

GPOne states that current shareholding partners Bajaj Auto and CFMoto plan to increase their investment in KTM to save the brand, while interest has also come from Hong Kong-based FountainVest.

KTM CEO Stefan Pierer said last month that he will use his own finances to help in the brand’s restructuring process, which will include selling various assets.

But while the significant interest in investment has provided light at the end of the tunnel for KTM, it will also likely come at the expense of Pierer losing some of his influence in the company he built.

KTM may also have to cut some of its other projects, like its bicycle business and the KTM XBow car business.

The racing division of KTM has been acting on a 100-point plan to ensure its survival, while motorsport boss Pit Beirer revealed that “concrete” talks had been held with Lewis Hamilton’s management about investing.

In MotoGP, KTM has already scaled back its involvement by removing the GASGAS and Husqvarna brands from the premier class, Moto2 and Moto3 grids.