Bajaj Auto may transfer stake in KTM to KTM Industrie
25th Mar 2019 9:57 am
Bajaj plans to transfer its 48 percent stake in KTM AG to Austrian parent company KTM Industrie AG.
Bajaj Auto has plans to transfer its 48 percent stake in KTM AG to Austrian parent company KTM Industrie AG. KTM Industrie holds approximately 51.7 percent of KTM AG, while Bajaj Auto International Holdings BV has an approximately 48 percent in KTM AG.
Following a discussion between Bajaj Auto and Pierer Industrie, an Austrian industrial investment group wholly-owned by Pierer Konzerngesellschaft mbH, both firms plan to transfer Bajaj’s current 48 percent stake in KTM to an equivalent equity stake in KTM Industrie. This means that Pierer Industrie will continue to hold 62 percent stake in KTM Industrie, while KTM Industrie would increase its stake in KTM AG from 51.7 percent to 99.7 percent.
The entire transaction, including the number of shares, which Bajaj could potentially get in KTM Industrie, is still being calculated. All the legal and economic requirements, along with a number of other considerations, are being examined and the final decision is expected to be announced in the second quarter of 2019.
KTM AG manufactures and sells KTM and Husqvarna 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 electric mobility, KTM Industrie generates a large share of its revenue from KTM AG.