Bajaj Auto is set to acquire majority control of Austrian motorcycle manufacturer KTM AG through its wholly owned Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). This strategic move involves a total investment of €800 million (approximately ₹7,765 crore) aimed at stabilizing KTM's finances and supporting its debt restructuring efforts.
Investment Breakdown:
€450 million (₹4,365 crore) as a secured term loan to KTM AG.
€150 million (₹1,455 crore) via convertible bonds in Pierer Bajaj AG (PBAG).
€200 million (₹1,945 crore) previously infused as shareholder debt.
Purpose: The funding is intended to support a court-approved debt restructuring program and provide working capital to KTM. A critical deadline of May 23, 2025, has been set to settle 30% of creditor claims, failure of which could lead to insolvency proceedings for KTM and its subsidiaries.
Regulatory Approvals: Bajaj Auto plans to acquire a controlling interest in PBAG, the parent company of Pierer Mobility AG, which owns KTM AG. This acquisition is subject to regulatory approval in Austria. Currently, Bajaj Auto holds an indirect 37.5% stake in KTM through PBAG and Pierer Mobility.
Shareholder Approval: The Bajaj Auto board has approved seeking post-facto shareholder approval for these related-party transactions through a postal ballot, in line with SEBI regulations.
This acquisition marks a significant milestone in Bajaj Auto’s international strategy and is expected to strengthen its position in the premium and sports motorcycle segment. Bajaj and KTM have an existing collaboration under a joint development program based in India.
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