Bajaj Accelerates KTM's Future with €800M Acquisition

Bajaj Auto is poised to become the majority stakeholder in Austrian motorcycle manufacturer KTM through an €800 million acquisition, marking a strategic shift from its current minority position. The deal is intended to revitalize KTM following its entry into court-supervised restructuring in November 2024, triggered by liquidity challenges.

The acquisition will be carried out through Bajaj Auto International Holdings BV (BAIHBV), a Netherlands-based subsidiary that currently owns 49.9% of Pierer Bajaj AG (PBAG). PBAG, in turn, holds approximately 75% of Pierer Mobility AG (PMAG), the listed parent company of KTM AG.

The transaction includes €200 million already provided as shareholder debt, along with a new commitment of €600 million. This comprises a €450 million secured term loan to KTM AG and €150 million in convertible bonds issued through PBAG and PMAG.

Upon receiving regulatory approvals in Austria, Bajaj Auto will assume operational control of KTM. The company aims to restructure KTM’s governance, resume production, and enhance its global footprint—with a particular focus on India, where KTM models are developed and exported to over 80 countries.

News by Rahul Yelligetti.