Apparel firm Polaris Industries Inc announced it has acquired additional shares in Austrian motorcycle maker KTM Power Sports AG through its Austrian subsidiary from an institutional investor in connection with a recently completed capital increase by KTM.
"They had anticipated this transaction when they initially purchased shares of KTM in August. KTM recently increased its outstanding capital stock as part of a transaction that resulted in it acquiring the interests of a minority shareholder in one of its subsidiaries. The purpose of the additional share purchase announced today is to maintain Polaris' 24.9% interest in the capital stock of KTM," stated Polaris Chief Financial Officer Mike Malone.
KTM Power Sports AG (formerly known as Cross Holding AG and currently publicly traded on the Vienna Stock Exchange under the symbol KTM) owns and controls KTM Sportmotorcycle AG, a leading European manufacturer of motorcycles.
Under the terms of a share purchase agreement with an institutional investor, Polaris, through its Austrian subsidiary, purchased an additional 148,160 shares of the outstanding capital stock of KTM Power Sports AG for approximately Euros 5.9 million or approximately $7.3 million, bringing Polaris' aggregate investment in KTM to approximately Euros 68.5 million or approximately $82.8 million.
Polaris' investment in KTM Power Sports AG is expected to be neutral to Polaris' calendar year 2005 consolidated earnings per share and somewhat accretive for the full year 2006. Purchases of KTM stock were financed from borrowings under Polaris' existing bank line of credit arrangement.
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