A Shareholder Dispute is Brewing at Troubled KTM
An entrepreneur and Shareholder in KTM holding company, Pierer Industrie AG, wants to cash in shares to repay a loan he apparently paid to PMG
The head of the Pierer Mobility Group (PMG), Stephan Pierer, and one of the group's investors, Stephan Zöchling, are currently at odds with each other, with Zöchling claiming he’s owed money by PMG, which he wants back.
In a nutshell, Zöchling holds a place on the board at PMG, which, as we know, holds an indirect stake in KTM AG. It’s reported by numerous outlets, including the science and finance website Der Standard, that Zöchling is calling for the repayment of a loan paid to PMG estimated to be in the region of €80 million, by his own company, Dabepo Holding AG.
To enable the investor and entrepreneur to get his money back, he’s now prepared to liquidate shares in PMG, which were apparently pledged to him, with his lawyers confirming the news to banks this week. The fracas continues as Zöchling’s company, Dabepo, claims that the loan is due, something that PMG disputes via the Vienna Commercial Court (VCC). The waters are muddied further as Dabepo claims that there was inadequate disclosure given by PMG when the loan was paid, and that details of Bajaj's shareholding in the Austrian group weren’t made clear. PMG has now begun a lawsuit against Dabepo at the VCC, demanding a ruling that the repayment of the loan is not yet due, but still, the apparent sale of the shares seems to be going ahead.
A spokesperson for PMG released a statement which reads:
"No lender of Pierer Konzerngesellschaft mbH currently has a due claim and a right to realize or initiate the realization of collateral granted to it by Pierer Konzerngesellschaft mbH." It goes on to say that should there be any "unlawful attempts at realization [of shares]” the group will respond with legal action.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
