Bajaj Auto and KTM's parent company Pierer Mobility have restructured their shareholdings in KTM through a share swap deal. Before the current deal, Bajaj Auto used to hold around 48 per cent in KTM AG, while Pierer Mobility AG used to hold 52 per cent stake. The change in shareholding will lead to Pierer Mobility AG getting 98.2 per cent stake in KTM, but Bajaj Auto will also gain by becoming an indirect stakeholder in other brands of the Austrian partner, including Husqvarna, GasGas and R Raymon. Under the deal, Bajaj Auto, through its Netherlands-based subsidiary Bajaj Auto International Holdings BV (BAIHBV) has transferred 46.5 per cent of the total stake in KTM to PTW Holding AG, the majority stakeholder in Pierer Mobility AG. In return, BAIHBV has been granted 49.9 per cent stake in PTW Holding AG.
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"In a first step completed today, BAIHBV swapped 46.5% (out of its about 48%) stake in KTMAG, for a 49.9% stake in PTW Holding, thus becoming an equity holder along with Pierer lndustrie in PTW Holding," the Bajaj Auto said in a statement. "In a second step PTW Holding will contribute the 46.5% stake in KTMAG to PMAG in exchange for 11,257,861 fresh shares in PMAG. This step approved by PMAG's Management Board today is targeted for implementation before end of October 2021 on approval of the PMAG Supervisory Board," added the statement.
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The KTM 200 Duke was the first made-in-India KTM when the first generation model was introduced in 2012. Bajaj Auto currently manufactures a range of KTM motorcycles from 125 cc to 390 cc engine displacement at its manufacturing facility in Pune.
Bajaj Auto's links with KTM date back to 2007, when Bajaj Auto International Holdings BV purchased a 14.5 per cent stake in KTM. BAIHBV gradually increased the stake to non-controlling share by 2020, after launching the KTM 200 Duke in India in 2012, when the KTM brand was introduced in India, with the first made-in-India model.
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Both the made-in-India Husqvarna Svartpilen 250 and the Vitpilen 250 are based on the KTM 250 Duke.
Currently, the tie-up includes Bajaj manufacturing small displacement KTM and Husqvarna bikes at its manufacturing facility in Maharashtra, with over 10 products being offered on sale in India, including two 250 cc models of the Husqvarna brand. Bajaj already has the Chetak electric scooter, and according to reports, KTM and Husqvarna also have plans to make India a manufacturing hub for its electric two-wheeler range.
