Polaris Industries Inc. announced its Austrian subsidiary has completed the second and final closing of its sale of shares of KTM Power Sports AG (KTM) to a subsidiary of KTM’s largest shareholder, Cross Industries AG. Under the terms of a previously announced agreement, approximately 0.27 million shares were delivered for about 11.5 million Euros, according to an article from Financial Wire.
Polaris intends to utilize the proceeds generated from the second closing to reduce the outstanding balance of the company’s revolving credit facility. Polaris now holds approximately 0.34 million KTM shares, representing slightly less than 5 percent of KTM’s current outstanding shares.
As a result of the second closing completed, Polaris expects to record in 2007’s second quarter a gain on the sale of the KTM investment of approximately $1.3 million pre-tax or about $0.02 per diluted share, as previously announced. The gain is due to previously unrealized translation gains, according to the article.
Polaris will release its financial results for its second quarter Tuesday, July 17, a Polaris press release stated.