Latest news with #RajivBajaj-led
Time of India
22-05-2025
- Automotive
- Time of India
Hamara KTM: Bajaj Auto to take control of Austrian company
Bajaj Auto is set to take control of Austrian motorcycle manufacturer KTM in a deal valued at ₹800 million (₹7,800 crore), the Rajiv Bajaj-led company said in an exchange filing, marking its transition from minority investor to majority stakeholder . The Pune-based motorcycle and three-wheeler maker began its partnership with KTM in 2007, initially with a 14.5% stake. Bajaj Auto, which currently has a 37.5% holding indirectly, co-develops and manufactures KTM bikes at its Chakan facility. These are sold in India and exported to 80 countries. The move is part of a comprehensive strategy to revive KTM's operations and reposition the brand for global growth, the company said in the statement. The acquisition will be executed through Bajaj Auto International Holdings BV (BAIHBV), the company's wholly owned Netherlands-based subsidiary, which currently holds a 49.9% stake in Pierer Bajaj AG (PBAG), a joint venture with Austrian entrepreneur Stefan Pierer. PBAG in turn owns about 75% of Pierer Mobility AG (PMAG), the listed parent of KTM AG, Bajaj Auto said in the exchange filing on Thursday. The ₹800 million package includes ₹200 million already infused over the past year as shareholder debt and a fresh commitment of ₹600 million to fund KTM's ongoing debt restructuring. Of this, ₹450 million will be provided as a secured term loan to KTM AG, while ₹150 million will be channelled via convertible bonds through PBAG and PMAG. The funds are being used to meet a court-mandated 30% payout to creditors by May 23, 2025, an essential requirement to prevent KTM from slipping into insolvency. The deal is subject to regulatory approvals in Austria, including clearance from the Austrian Takeover Commission, Foreign Investment Control, and Merger Control authorities. Upon completion, Bajaj Auto will gain a controlling stake in PBAG, giving it operational control over KTM's global business. "This acquisition underscores our long-term commitment to the KTM brand and the premium motorcycle segment. We are taking a leadership role to ensure KTM not only survives but thrives," a Bajaj Auto executive said. KTM entered court-supervised restructuring in November 2024 amid liquidity issues. With creditor approval secured in February 2025, the onus is now on Bajaj to meet the funding deadline, unlock the restructuring process, and restart stalled operations. The Rajiv Bajaj-led company plans to overhaul the unit's governance structure, restart production, and deepen its joint development initiatives, especially in India, where the KTM bikes are developed and made. With this move, Bajaj Auto aims to position itself as a global leader in performance motorcycles and steer KTM through a critical turnaround as it looks to create long-term value and strengthen its presence in international markets, a strategy that its domestic rivals are also following.
Time of India
22-05-2025
- Automotive
- Time of India
Bajaj Auto to acquire controlling stake in KTM in €800 million deal
Mumbai: Bajaj Auto is set to take control of Austrian motorcycle manufacturer KTM in a deal valued at €800 million, the company said in an exchange filing, marking its transition from a minority investor to majority stakeholder. The Pune-based motorcycle and three-wheeler maker began its partnership with KTM in 2007, initially with a 14.5% stake. Bajaj Auto makes and sells KTM bikes. The move is part of a comprehensive strategy to revive KTM's operations and reposition the brand for global growth, the company said in the statement. The acquisition will be executed through Bajaj Auto International Holdings BV (BAIHBV), the company's wholly owned Netherlands-based subsidiary, which currently holds a 49.9% stake in Pierer Bajaj AG (PBAG)—a joint venture with Austrian entrepreneur Stefan Pierer. PBAG in turn owns about 75% of Pierer Mobility AG (PMAG), the listed parent of KTM AG, Bajaj Auto said in the exchange filing on Thursday. The €800 million package includes €200 million already infused over the past year as shareholder debt and a fresh commitment of €600 million to fund KTM's ongoing debt restructuring. Of this, €450 million will be provided as a secured term loan to KTM AG, while €150 million will be channelled via convertible bonds through PBAG and PMAG. The funds are being used to meet a court-mandated 30% payout to creditors by May 23, 2025, an essential requirement to prevent KTM from slipping into insolvency. The deal is subject to regulatory approvals in Austria, including clearances from the Austrian Takeover Commission, Foreign Investment Control, and Merger Control authorities. Upon completion, Bajaj Auto will gain a controlling stake in PBAG, giving it operational control over KTM's global business. KTM entered court-supervised restructuring in November 2024 amid liquidity issues. With creditor approval secured in February 2025, the onus is now on Bajaj to meet the funding deadline, unlock the restructuring process, and restart stalled operations. The Rajiv Bajaj-led company plans to overhaul KTM's governance structure, restart production, and deepen its joint development initiatives, especially in India, where KTM bikes are developed, made and exported to over 80 countries. With this move, Bajaj Auto aims to position itself as a global leader in performance motorcycles and signals its readiness to steer KTM through a critical turnaround, aiming to create long-term value and strengthen its presence in international markets.
