Bajaj Auto will achieve majority ownership of Austrian motorcycle giant KTM through this international expansion move. Bajaj Auto International Holdings BV (BAIHBV) operating from the Netherlands will obtain majority control of KTM AG through an €800 million (approximately ₹7,765 crore) funding package.
Bajaj Auto will gain enhanced control of KTM AG’s premium and performance motorcycle business worldwide after this transition from minority to majority ownership. The acquisition serves two purposes: it helps KTM AG with financial restructuring and business continuity while expanding Bajaj Auto’s global market presence.
The €800 million funding includes €450 million (₹4,365 crore) in secured term loans to KTM AG and €150 million (₹1,455 crore) in convertible bonds for Pierer Bajaj AG (PBAG) and €200 million (₹1,945 crore) in shareholder debt already provided. KTM needs this capital to fulfill a court-ordered debt restructuring requirement that demands 30% creditor claim resolution before May 23, 2025 to prevent insolvency proceedings.
Bajaj Auto plans to acquire PBAG while awaiting Austrian regulatory approval to do so. Bajaj Auto maintains a 37.5% ownership stake in KTM through its investments in PBAG and Pierer Mobility.
Bajaj Auto’s board has authorized a postal ballot to obtain shareholder approval for related-party transactions while following Sebi rules.
The acquisition represents a vital achievement in Bajaj Auto’s worldwide business plan. The joint development program between the companies in India will continue while the acquisition will strengthen KTM’s operations and drive its recovery in the worldwide motorcycle market.
