It is official, financially beleagured Austrian motorcycle maker KTM will be acquired by India’s Bajaj Auto. In an official statement, Bajaj will take majority stake in long-time partner KTM, with a 800 million Euro (RM3.861 billion) with provision of a debt package.
With 200 million Euro (RM965 million) already disbursed, this take Bajaj from being a minority shareholder in the Mattighofen firm to gaining majority control. Currently, Bajaj, through BAIHBV, holds a 49.9% stake in Pierer Bajaj AG (PBAG) in Austria with the remaining controlling stake in PBAG held by Pierer Industrie, which is owned by Chief Executive Officer Stefan Pierer.
PBAG in turn holds 75% stake of Pierer Mobility (PMAG), which is the holding company of KTM, which in turns owns the KTM, Husqvarna and GasGas brands. Bajaj effectively holds 37.5% in PMAG/KTM prior to the current transaction although with the debt package, how the share spread and equity swap, if any, is yet to be made clear, reports carandbike.com.
A set of strategic moves were outlined in the statement,including a proposed equity acquisition of a controlling stake in PBAG and in turn, in PMAG/KTM. What is obvious is the debt package will give KTM some much needed liquidity in order to continue operations and meet creditor obligations that were part of its original financial restructuring plan.
Additionally, binding restructuring orders from the Court in Austria is required to end of the self-administration process and settle the creditors’ quota. Alongside, applications are being made to the Austrian Takeover Commission, Foreign Investment Control and Merger Control Authorities, as applicable, for their approval.
Once approvals are in place, the door is open for Bajaj to acquire a controlling stake in KTM. This will place Bajaj as a member of the table in the premium motorcycle market.
“With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network,” the statement detailed.
As a result, Stefan Pierer will step down from the Executive Board of PMAG in June 2025 after the conclusion of the restructuring proceedings. The Supervisory Board appoints Verena Schneglberger-Grossmannas new member of the Executive Board (Chief Legal Officer) of PMAG, supporting CEO Gottfried Neumeister.
Habis lah nasib KTM macam Jaguar. Kena sentuhan najis pasti bankrupt
Ok, what Tata did with JLR?