Latest news with #KTMAG
NZ Autocar
25-05-2025
- Automotive
- NZ Autocar
KTM secures its future with investment by partner Bajaj
The KTM AG board has announced that the company has expanded its relationship with its long-standing partner Bajaj. It has also secured Bajaj as its main investor. Gottfried Neumeister (above) CEO, KTM AG stated: 'Today we have been given the opportunity to continue the history of KTM. 'Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made available. 'The existing sites – in particular our main plant in Mattighofen/Munderfing – will remain the basis for our future success. This means that we will continue to be an important employer for the entire region. 'In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible. 'I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world's best-known motorcycle brands, which has a unique community.' As part of its rejuvenation, KTM is about to release details of its new 390 line-up that includes the SMC R, 390 Enduro R, and 390 Adventure R. KTM is also launching the Orange Blood campaign. The company has invited passionate KTM owners and riders like to join the Orange Board. These riders will bring their experience, insights and passion to the table to help shape the future of KTM. Over 5000 applied and applications are now closed. In June, KTM will reveal the 15 selected members who will head to Austria this summer. They will have exclusive access behind the scenes, meet the KTM crew, and 'work with us to drive what's next.'
Economic Times
23-05-2025
- Automotive
- Economic Times
KTM co-owner Bajaj Auto signs €566m loan before funding deadline
The co-owner of the KTM AG motorcycle maker has secured a €566 million ($632 million) one-year loan within days of a deadline to fund an insolvency plan at the troubled Austrian company. The European unit of Bajaj Auto Ltd. agreed to the unsecured loan with JP Morgan Chase & Co., DBS Bank Ltd. and Citigroup Inc., according to a regulatory filing to the BSE. The funds will be used for Bajaj Auto's investments, according to the filing which does not name KTM. KTM's creditors agreed in February to a 70% haircut as part of a restructuring deal. The company has until May 23 to deposit €544 million with its insolvency administrator and pay out a 30% quota to and Austrian entrepreneur Stefan Pierer co-own Swiss-listed Pierer Mobility, which is the parent of KTM. Citi has been advising the company on securing fresh funds, including additional cash required to resume filed for insolvency last year after struggling to navigate the volatile demand for its motorbikes during the Covid-19 pandemic, which led to excessive inventories. The company has been among the hardest hit amid financial difficulties in Austria's industrial sector, suffering from rising energy and labor costs that risk thousands of jobs. Representatives for KTM and Bajaj didn't immediately respond to requests for comment outside regular business hours.
New Indian Express
22-05-2025
- Automotive
- New Indian Express
India's crude oil, refinery throughput, petroleum product output fall in April
India's two-wheeler major Bajaj Auto on Thursday said that it will acquire majority control of Austrian motorcycle company KTM AG through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). The move comes as KTM is undergoing a restructuring process amid an acute financial crisis. As part of the acquisition plan, BAIHBV has committed €800 million (nearly Rs 7,765 crore) in funding. This includes a €450 million (Rs 4,365 crore) secured term loan to KTM AG and €150 million (Rs 1,455 crore) in convertible bonds issued by Pierer Bajaj AG (PBAG). The investment follows an earlier infusion of €200 million in shareholder debt. Bajaj Auto believes that the acquisition will aid KTM's ongoing restructuring, ensure operational continuity, and help expand Bajaj's global reach in the motorcycle market. 'With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network,' said Bajaj Auto in a statement.
New Indian Express
22-05-2025
- Automotive
- New Indian Express
Bajaj Auto to acquire majority stake in KTM
India's two-wheeler major Bajaj Auto on Thursday said that it will acquire majority control of Austrian motorcycle company KTM AG through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). The move comes as KTM is undergoing a restructuring process amid an acute financial crisis. As part of the acquisition plan, BAIHBV has committed €800 million (approximately Rs 7,765 crore) in funding. This includes a €450 million (Rs 4,365 crore) secured term loan to KTM AG and €150 million (Rs 1,455 crore) in convertible bonds issued by Pierer Bajaj AG (PBAG). The investment follows an earlier infusion of €200 million in shareholder debt. Bajaj Auto believes that the acquisition will aid KTM's ongoing restructuring, ensure operational continuity, and help expand Bajaj's global reach in the motorcycle market. 'With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network,' said Bajaj Auto in a statement.
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Business Standard
22-05-2025
- Automotive
- Business Standard
Bajaj Auto to acquire majority stake in KTM with €600 mn fresh infusion
Bajaj Auto Ltd on Thursday announced that it will become the majority owner of Austrian motorcycle brand KTM, strengthening its position in the premium motorcycle segment. The deal, subject to regulatory approvals, will be executed through its Netherlands-based wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV), which will provide fresh funding of €600 million to KTM AG, in addition to the €200 million already infused as shareholder debt to ensure continuity and support the revival of the Austrian brand's operations. KTM is known globally for its popular brands like KTM, Husqvarna and GASGAS. It was in November 2024 that KTM AG and its subsidiaries, KTM Components GmbH and KTM F&E GmbH, entered into a restructuring process, owing to liquidity challenges that could not service the spiralling debt and working capital constraints that stifled routine business operations. Later, on 25 February 2025, the creditors accepted the restructuring plan submitted by KTM AG, which provided for creditors to receive a cash quota of 30 per cent of their claims in the form of a one-time payment by 23 May. Simultaneously, Bajaj has arranged a debt funding package of €800 million to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM's debt restructuring with the approval of the competent court in Austria and infusing funds into the company to revive its operations and working capital cycle. Of this total €800 million debt package, €200 million has already been infused into the company so far, and the balance €600 million is being done now. Through this, the Indian major will be acquiring a majority stake in Pierer Bajaj AG (PBAG), which indirectly owns KTM through Pierer Mobility AG (PMAG). BAIHBV holds a 49.9 per cent stake in Pierer Bajaj AG (PBAG) in Austria. The remaining controlling stake in PBAG is held by Pierer Industrie AG, owned by entrepreneur Stefan Pierer. PBAG holds a 75 per cent stake in its listed subsidiary, PMAG. PMAG is the holding company of KTM AG. Bajaj effectively holds a 37.5 per cent stake in PMAG/KTM through the above chain, prior to this transaction. 'Bajaj Auto intends to acquire a sole controlling stake in PBAG. The equity ownership realignment and change of control will, however, be brought into effect only after regulatory clearances,' the company said in a statement. The transactions were reportedly approved by Bajaj Auto's Audit Committee and will require shareholder approval through postal ballot. 'This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage positions Bajaj Auto as a driving force in shaping the future of one of the world's most admired high-performance motorcycle companies,' the statement said. Simultaneously, a Pierer group company entered into loan and share pledge agreements with Dabepo Holding GmbH in December 2024 for an amount which, along with interest and costs, adds up to €80 million. Bajaj, through BAIHBV, has taken over the commitment under these agreements from Dabepo, to prevent the threatened foreclosure of this loan, which could impede the planned restructuring and ramp-up of the KTM business. Key milestones 1. On November 28, 2024, KTM AG applies for the initiation of judicial restructuring proceedings of KTM AG and its two subsidiaries. 2. On February 25, 2025, the creditors accepted the restructuring plan submitted by KTM AG. 3. This plan provided for creditors to receive a cash quota of 30% of their claims in the form of a one-time payment to be deposited with the restructuring Administrator by May 23, 2025. 3. On May 22, Bajaj Auto announces plans to acquire majority stake in the company via €800 million revival and restructuring plan 4. The Court will confirm the restructuring plan by mid-June 2025, post which the quota payment will be released to the creditors and the restructuring proceedings of KTM AG and its subsidiaries will be concluded with legally binding orders.
