Bajaj Auto gets share in Pierer Mobility

Bajaj Auto and Pierer Industrie, its partner in KTM AG, on Wednesday announced that they have finalised a plan to simplify shareholding in premium bike maker KTM through a share swap deal. Following this, Bajaj will become an indirect stakeholder in other brands of the Austrian partner — including Husqvarna, Gasgas, and Ramon.

Earlier, Bajaj Auto and Pierer Mobility AG (PMAG) held around 48 per cent and 52 per cent, respectively, in KTM AG. Bajaj’s shareholding was through its Netherlandsbased subsidiary Bajaj Auto International Holdings BV (Baibhv).

As part of the two-step deal, Bajaj Auto has transferred 46.5 per cent of its total stake in KTM to PTW Holding AG, the majority shareholder in PMAG. In return, Baibhv has been granted a 49.9 per cent stake in PTW Holding AG.

“In a second step, the 46.5 per cent KTM shares now held by PTW Holding AG will be contributed to Pierer Mobility AG (PMAG) against the granting of new shares in the context of a capital increase through contributions in kind,” the company said in a statement.

After this transaction was executed, the shareholding of PMAG in KTM AG has increased from 51.7 per cent to around 98.2 per cent. The Pierer Group will continue to retain sole control over PMAG. On Wednesday, all the related parties signed a contract in this regard, the firm said.

PMAG’S board resolved on Wednesday to execute a capital increase worth Euro 895 million, corresponding to 49.9 per cent of the existing share capital, by making use of the authorised capital. In this context, 11.26 million shares will be issued at a price of Euro 79.50 per share, which is higher than the current stock price.

BAJAJ AUTO HAS TRANSFERRED 46.5% OF ITS STAKE IN KTM TO PTW HOLDING AG. IN RETURN, BAIBHV HAS BEEN GRANTED A 49.9% IN PTW HOLDING AG