Bajaj Auto on Thursday (22 May) announced the purchase of Austrian motorcycle maker KTM. This deal between the two companies can be done for Rs 7,765 crore. Bajaj Auto will acquire majority control of KTM AG through its wholly-owned subsidiary Bajaj Auto International Holdings BV (BAIHBV). Bajaj Auto will now become a majority stakeholder from a minority stakeholder in KTM, which is facing bankruptcy. This is expected to strengthen the company’s position in the premium and sports motorcycle segment. Currently, Bajaj Auto International Holdings has a 49.9% stake in KTM. Bajaj Auto is the co-owner of KTM. What will Bajaj Auto do for KTM Bajaj Auto said that the acquisition will help in the ongoing restructuring of KTM, ensure operational continuity and help expand Bajaj’s global reach in the motorcycle market. There is a commitment of Rs 7,781 crore of funding to support debt restructuring. BAIHBV is committed to make a total investment of approximately ?7,765 crore. What is included in BAIHBV’s investment in KTM – Court deadline and funding timeline The purpose of this funding is to stabilize KTM’s finances by supporting the court-approved debt restructuring program and providing working capital. The company said that out of the total amount, Rs 1,945 crore has already been infused into KTM and the remaining Rs 5,835 crore will be distributed soon. These financial measures are designed to meet the deadline of May 23, 2025 set by the court. Under which 30% of the creditors’ claims will be settled. Failure to do so may lead to bankruptcy proceedings against KTM and its subsidiaries. Regulatory approval sought for PBAG control Bajaj Auto also plans to acquire a controlling stake in PBAG, the parent company of Pierer Mobility AG, owned by KTM AG. This is subject to regulatory approval in Austria. Bajaj Auto currently holds an indirect 37.5% stake in KTM through PBAG and Pierer Mobility. Pierer Bajaj AG is a joint venture of Bajaj Auto International Holdings BV and Pierer Industry AG. It has a 74.9% stake in Pierer Mobility AG, which owns motorcycle brands such as KTM, GasGas, Husqvarna and CFMot in China. Pierer Mobility filed for bankruptcy on November 29, 2024. Bajaj will seek shareholder approval through postal ballot Bajaj Auto’s board has approved seeking shareholder approval for these related-party transactions through postal ballot, in accordance with SEBI regulations. A milestone in Bajaj’s global motorcycle strategy This acquisition is a major milestone in Bajaj Auto’s international strategy. It is expected to aid KTM’s financial recovery and business operations. Both the companies are already collaborating under a joint development programme based in India. Read this news too… Bajaj Auto will invest ?1,362 crore in KTM: The company is battling bankruptcy, Bajaj Auto International Holdings has 49.9% stake in KTM To save Austrian bike manufacturer KTM from bankruptcy, Bajaj Auto will invest Rs 1,362 crore in the company. The company has given this information in an exchange filing. Bajaj Auto is the co-owner of KTM. According to an exchange filing, Bajaj Auto is set to invest 150 million euros in its subsidiary Bajaj Auto International Holdings BV. Bajaj Auto International Holdings holds a 49.9% stake in KTM, which is facing bankruptcy. Read full news…
