Bajaj Auto has restarted talks to transfer its stake in KTM to the Austrian motorcycle brand’s parent firm Pierer Mobility AG. The move is being considered to simplify the shareholding pattern by transferring the stake to a new holding company. Currently, Pierer Mobility AG (PMAG) and Bajaj Auto’s 100 percent Netherlands subsidiary, Bajaj Auto International Holdings, have 51.7 percent and 48 percent stake respectively in KTM AG. Pierer Industrie AG holds over 60 percent stake in Pierer Mobility AG. As part of the proposed transaction, Pierer Industrie AG and Bajaj will move their stakes in Pierer Mobility to a new company PTW Holding AG.
|The proposal envisages Bajaj swapping its 48 percent stake in KTM AG for a stake in PMAG and both Pierer Industrie and Bajaj moving their stakes in PMAG to a new ‘Holdco’ between them,” Bajaj Auto said in a regulatory filing.|