Bajaj Auto to transfer its stake in KTM to KTM Industrie?

Bajaj Auto plans to transfer its 48 percent stake in Austrian bike maker KTM AG to its parent company KTM Industrie AG. While KTM Industrie holds approximately 51.7 percent of KTM AG, Bajaj Auto International Holdings BV holds approximately 48 percent of KTM AG equity.

As per a discussion between Bajaj Auto and Pierer Industrie, an Austrian industrial investment group that is fully owned by Pierer Konzerngesellschaft mbH, both the companies plan to transfer Bajaj Auto’s current 48 percent stake in KTM to an equivalent equity stake in KTM Industrie. This way, Pierer Industrie will continue to hold 62 percent stake in KTM Industrie while KTM Industrie would increase its stake in KTM AG from the current 51.7 percent to 99.7 percent.

The entire transaction and the amount of shares that Bajaj Auto could possibly get in KTM Industrie, considering its investment value and KTM Industrie’s share price is still being calculated. The legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorised capital of KTM Industrie are being examined and the final decision is to be considered in the second quarter of 2019.

KTM AG manufactures and distributes the KTM and Husqvarna bike brands which are marketed in North America, Western Europe, Australia and Argentina. Claimed to be the biggest European motorcycle producer with large focus on sport motorcycles and electro mobility, KTM Industrie generates a large share of its revenue from KTM AG.