Bajaj Auto at present owns 48 per cent in KTM AG, and manufactures and sells small displacement bikes in India beneath the Duke and RC vary.
Bikes just like the KTM 390 Adventure are manufactured in India by Bajaj Auto
Bajaj Auto has restarted talks to switch its stake in KTM AG to the Austrian bike model’s father or mother agency Pierer Mobility AG. The transfer is being thought-about to simplify the shareholding sample by transferring the stake to a brand new holding firm. Currently, Pierer Mobility AG (PMAG) and Bajaj Auto’s 100 per cent Netherlands subsidiary, Bajaj Auto International Holdings, have 51.7 per cent and 48 per cent stake respectively in KTM AG. Pierer Industrie AG holds over 60 per cent stake in Pierer Mobility AG. As a part of the proposed transaction, Pierer Industrie AG and Bajaj will transfer their stakes in Pierer Mobility to a brand new firm PTW Holding AG.
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“The proposal envisages Bajaj swapping its 48 per cent stake in KTM AG for a stake in PMAG and both Pierer Industrie and Bajaj moving their stakes in PMAG to a new ‘Holdco’ between them,” Bajaj Auto stated in a regulatory submitting.
If a call is taken to execute the transaction, Pierer Mobility AG will contemplate the authorized and financial necessities and circumstances of capital enhance by contribution in variety from the present authorised capital of the corporate. The discussions although are at a really preliminary stage and the disclosure is being made solely by the use of ample warning, the corporate stated within the regulatory submitting.
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Through the partnership, Bajaj Auto manufactures and sells KTM bikes in India, and in addition manufactures small displacement KTM bikes within the Duke and RC vary at Bajaj Auto’s manufacturing facility in Chakan, on the outskirts of Pune. In 2007, Bajaj Auto purchased a 14.5 per cent stake in KTM AG, and by 2013, Bajaj Auto’s stake elevated to 48 per cent. In 2013, KTM acquired Swedish bike model Husqvarna, and in 2019, KTM acquired Spanish bike model GasGas.