Bajaj Auto holds 48% in KTM AG through its fully-owned Netherlands-based subsidiary Bajaj Auto International Holdings. Pierer Mobility AG (PMAG), a Pierer Group company listed on the Zurich and Frankfurt exchanges, holds another 51.7% in KTM.
Bajaj will swap a 46.5% stake in KTM for a stake in PTW Holding, which holds 60% of PMAG. Thus, after the conclusion of the deal, Bajaj Auto will become an indirect stakeholder in PMAG, which controls not just KTM but Husqvarna, Ramon and Gas Gas brands too.
PTW Holding will relinquish the stake it gets in KTM from Bajaj to PMAG for fresh shares in the company. After completion of this transaction, the shareholding of PMAG in KTM will increase to about 98.2% from 51.7% at present.
The board of Bajaj Auto has granted in-principle approval to the transaction, the company said in a press statement late Monday evening.
It is yet to be determined how much stake Bajaj will get in PTW Holding in exchange for its KTM shareholding. The companies were taking the necessary clearances from competition, take over and other relevant authorities, as per the statement.
In a separate press release issued by PMAG in Austria, the company said that it has been informed of the proposed transaction by its parents Pierer Industrie and PTW Holding. “The Pierer Group will continue to maintain sole control over PIERER Mobility AG,” PMAG said in the release.
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