5 days ago
Rajiv Bajaj To Resign From Pierer Mobility AG Supervisory Board
As part of a broader realignment strategy, Austria-based Pierer Mobility AG announced significant changes to its Supervisory Board. The company confirmed that Chairman Stephan Zochling, Deputy Chairman Rajiv Bajaj, and board member Friedrich Roithner will step down from their roles at the conclusion of the upcoming Annual General Meeting scheduled for June 23, 2025. The resignations come in the wake of a successful restructuring process involving Bajaj Auto and KTM along with its affiliated companies where the Indian two-wheeler giant has committed to infuse 800 million euros to bail KTM out of its financial troubles. From the outside, it may seem a bit anti-climatic, for Bajaj to resign from the board, but industry analysts see this as more of a strategic reshuffle.
At the same meeting, shareholders will vote on the appointment of three new candidates to the Supervisory Board. Nominated for election are Dinesh Thapar, Chief Financial Officer of Bajaj Auto Limited, and legal experts Ernst Chalupsky and Ewald Oberhammer. The move signals a refreshed strategic direction for the company, which is known for its global leadership in performance motorcycles and e-mobility solutions. These changes underscore PIERER Mobility's commitment to evolving its governance structure in alignment with its long-term growth objectives and international partnerships, particularly with Bajaj Auto.
To revive the struggling KTM, Bajaj arranged a comprehensive 800 million Euros (approximately Rs. 7,200 crore) debt funding package. Of this, 200 million Euros have already been infused in tranches to maintain business continuity. The remaining 600 million Euros is now being deployed to fulfill creditor obligations and reboot operations. Out of this 450 million Euros will be a secured term loan by BAIH BV to KTM AG and the rest 150 million Euros will be issued as convertible bonds by PBAG and will be subscribed by BAIHBV, that will be loaned by Pierer Bajaj AG to Pierer Mobility AG and the funds will be eventually used to pay off the balance amount of creditors' quota and restart costs.
