Bajaj completes KTM takeover

KTM is finally heading for a new future after Bajaj Auto exercised its call option agreement to take over the Austrian brand.

It was a little over a year ago when KTM’s financial troubles were brought to light, and since then, the ensuing calendar year has been full of ups and downs, but mainly downs. 

Now, KTM finally has its new owner after Pierer Mobility AG confirmed Bajaj’s acquisition as part of a press release. What all of this means exactly is that Bajaj Auto International Holdings B.V. (BAIH) has gained a controlling stake in Pierer Mobility AG, which also includes Husqvarna and GasGas. 

The development also sees Bajaj take control of all 50,100 shares held by Pierer Industrie AG through Pierer Bajaj AG. To make all of this a bit more clear, the deal has resulted in two key name changes.

Pierer Bajaj AG will soon be renamed Bajaj Auto International Holdings AG, while Pierer Mobility AG switches to Bajaj Mobility AG, after the Indian company acquired a stake of 74.9 per cent of the shares in Pierer Mobility AG. 

The transaction has been approved by regulators, which comes after Bajaj injected €800 million (just over £700 million) in May to basically keep KTM alive. 

A press release from Pierer Mobility AG said this about the Bajaj takeover: 

“Bajaj Auto International Holdings B.V. exercised the Call Option. Today, the shares held by Pierer Industrie AG in the majority shareholder Pierer Bajaj AG have been transferred to Bajaj Auto International Holdings B.V.. Bajaj Auto International Holdings B.V. is now the sole shareholder of Pierer Bajaj AG and, with a stake of approximately 74.9 per cent of the shares in PIERER Mobility AG, also the controlling majority shareholder of PIERER Mobility AG.” 

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