Bajaj Auto Limited plans to acquire a controlling interest in KTM AG to stabilize operations and expand its influence in the premium motorcycle market, supported by a substantial debt funding package.

Information on the Target

Bajaj Auto Limited, a leading Indian motorcycle manufacturer, is set to acquire a controlling interest in KTM AG, a prominent Austrian motorcycle company. This decision signals a significant shift for Bajaj Auto from a minority investor to majority ownership, positioning them to influence the long-term strategic direction of KTM, which has built a strong reputation in the premium and sports motorcycle segments.

Currently, Bajaj Auto International Holdings BV (BAIHBV), a wholly-owned subsidiary of Bajaj Auto, holds a 49.9% stake in Pierer Bajaj AG (PBAG), the entity that oversees KTM operations. Following the acquisition, Bajaj is committed to revitalizing KTM's business by utilizing a devised debt funding strategy while facilitating a seamless transition of ownership.

Industry Overview in Austria

The motorcycle industry in Austria presents a unique landscape characterized by a robust demand for high-performance vehicles. KTM, as one of the country's most reputable motorcycle ma