Latest news with #StefanPierer
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.'
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)
Yahoo
23-05-2025
- Automotive
- Yahoo
India's Bajaj Auto enters call option deal to buy controlling stake in KTM
(Reuters) -Bajaj Auto 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 , 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) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
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.
