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Reuters
23-05-2025
- Automotive
- Reuters
India's Bajaj Auto enters call option deal to buy controlling stake in KTM
May 23 (Reuters) - Bajaj Auto ( opens new tab has entered a call option agreement with Pierer Group that will allow it to take a controlling stake in troubled Austrian motorcycle maker KTM, the Indian automaker said on Friday. If fully exercised, this option would lead to the exit of Austrian businessman Stefan Pierer and his Pierer Group from KTM, marking the end of his three-decade-long tenure since taking over the company. Under the agreement, Bajaj, which currently holds a 37.5% stake in KTM, can acquire a 50% stake in KTM's parent company, Pierer Bajaj AG, from the Pierer Group for 50.7 million euros. This option can be exercised partly or fully by May 31, 2026. Pierer Bajaj AG owns 75% of Vienna-listed Pierer Mobility AG ( opens new tab , the holding company for the KTM and Husqvarna motorcycle brands. Bajaj, an investor in KTM since 2007, said it would take control of the Austrian company through a 800 million euro debt package aimed at reviving KTM, which filed for court restructuring proceedings in November as it grappled with severe liquidity issues amid declining sales. ($1 = 0.8832 euros)
Time of India
22-05-2025
- Automotive
- Time of India
Bajaj Auto to acquire majority stake in Austrian bike maker KTM
Bajaj Auto is in the process of acquiring a majority stake in the Austrian bike maker KTM. The acquisition is part of a deal involving a shareholder debt of Rs 7,769 crore (euro 800 million) offered by Bajaj Auto to KTM, providing the latter with liquidity to reduce its debt. Currently, Bajaj Auto effectively holds 37.5% in Pierer Mobility AG, which is the holding company of KTM AG, the manufacturer of motorcycle brands KTM, Husqvarna, and Gasgas. Bajaj Auto, through its wholly owned subsidiary, Bajaj Auto International Holdings, holds a 49.9% stake in its associate Pierer Bajaj AG in Austria. The remaining stake in Pierer Bajaj AG is held by Pierer Industrie AG, owned by entrepreneur Stefan Pierer. Pierer Bajaj AG holds around a 75% stake in its listed subsidiary, Pierer Mobility AG. Pierer Mobility AG is the holding company of KTM. "Bajaj Auto intends to acquire a sole controlling stake in Pierer Bajaj AG. The equity ownership realignment and change of control will, however, be brought into effect only after regulatory clearances," Bajaj Auto said in a statement. Bajaj Auto already infused Rs 1,942 crore in KTM and is in the process of infusing the balance amount of Rs 5,827 crore (euro 600 million) in the company. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng với sàn môi giới tin cậy IC Markets Đăng ký Undo Of the proposed Rs 5,827 crore infusion, Rs 4,369 crore (euro 450 million) will be in the form of a secured term loan, and Rs 1,457 crore (euro 150 million) will be in the form of convertible bonds issued by Pierer Bajaj AG and subscribed to by Bajaj Auto International Holdings. The immediate next step is to secure binding restructuring orders from the court in Austria to mark the end of the self-administration process and settle the creditors' quota. Alongside, applications are being made to the Austrian Takeover Commission, Foreign Investment Control, and Merger Control Authorities, as applicable, for their approval. After receiving the approvals, Bajaj Auto will initiate a revamp of the governance framework, including reconstituting the board, commencing the turnaround plan, implementing measures that widen the remit of the existing joint development program, and exploring potential partnerships to build sustainable competitive advantage and long-term value creation. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Bloomberg
22-05-2025
- Automotive
- Bloomberg
India's Bajaj Auto to Take Control of KTM With €800 Million Loan
Indian motorbike maker Bajaj Auto Ltd. plans to acquire a controlling stake in cash-strapped KTM AG and has lined up a debt funding package of as much as €800 million ($907 million) that will save the Austrian company from bankruptcy. Bajaj Auto has already infused €200 million of debt support in the maker of MotoGP bikes, and will deploy the remaining amount ahead of a deadline to repay creditors, it said in a filing to exchanges in Mumbai Thursday. The funding package includes a €450 million secured term loan to KTM and €150 million in convertible bonds issued by parent Pierer Bajaj AG.
