Cross Industries announced plans to delist KTM and WP Suspension from the Vienna Stock Exchange. Cross Industries, which owns a controlling share of KTM AG, will propose to withdraw all public shares at the motorcycle manufacturer’s annual shareholders meeting April 21. KTM AG was first publicly traded on Aug. 6, 2012 while shares of WP began trading on April 10, 2015.
According to Cross Industries, the move to delist both KTM and WP will establish a leaner capital market structure. The move will not have much of an impact on its ownership structure for both companies, as only 0.6% of of KTM and 0.29% of WP are publicly traded. Cross Industries owns 99.71% of the WP Suspension and 51.4% of KTM (India’s Bajaj Auto owns 48.0%).
Cross Industries plans to offer 122.50 euros per share to buy out the outstanding stock of KTM. That price is based on the average price of KTM stock over the last six months. For WP, Cross Industries intends to offer 18 euros per share, a 20.24% premium over the average price from the last six months. Shareholders who do not accept the offers may continue to own their stakes after the companies have been taken off the Vienna Stock Exchange.
KTM’s Chief Executive Officer Stefan Pierer is the controlling owner of Cross Industries and will remain in charge of the company.
[Source: Cross Industries, KTM]