Bajaj Considers a talk to discussion In KTM To Austrian Company

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.

Bajaj Considers Transfer Of Stake In KTM To Austrian Parent Company

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.

If a decision is taken to execute the transaction, Pierer Mobility AG will consider the legal and economic requirements and conditions of capital increase by contribution in kind from the existing authorized capital of the company. The discussions though are at a very preliminary stage and the disclosure is being made only by way of abundant caution, the company said in the regulatory filing.

The partnership, Bajaj Auto manufactures and sells KTM bikes in India, and also manufactures small-displacement KTM bikes in the Duke and RC range at Bajaj Auto’s manufacturing facility in Chakan, on the outskirts of Pune. In 2007, Bajaj Auto bought a 14.5 percent stake in KTM AG, and by 2013, Bajaj Auto’s stake increased to 48 percent. In 2013, KTM acquired Swedish motorcycle brand Husqvarna, and in 2019, KTM acquired Spanish motorcycle brand GasGas.

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