Bajaj Auto, Pierer Mobility AG to restructure shareholding in KTM: All details

After the completion of the transaction, the shareholding of Pierer Mobility AG in the operating KTM AG will increase from the current 51.7 percent to 98.2 percent.

By:Updated: Jul 27, 2021 11:08 AM

 

Bajaj Auto Ltd recently announced that it has reached an agreement with its Austrian partner Pierer Industrie AG for simplifying their shareholding pattern in KTM through a two-step transfer of their stakes to a new holding company. Earlier, Pierer Mobility AG (PMAG) and Bajaj Auto’s 100 percent Netherlands subsidiary better known as – Bajaj Auto International Holdings BV (BAIHBV), held 51.7 percent and 48 percent respectively in KTM AG. Moreover, Pierer Industrie AG holds over 65.29 percent in PMAG. Under the aforementioned agreement, BAIHBV will swap 46.5 percent out of its 48 percent stake in KTM AG, for a stake in PlW Holding, which is a 100 percent subsidiary of Pierer lndustrie, Bajaj Auto stated in a late-night regulatory filing.

As a second step, PlW Holding will later be contributing its 46.5 percent stake in KTM AG to PMAG, for fresh shares to be issued by PMAG in lieu. After the completion of both the steps, Pierer lndustrie and BAIHBV will be stakeholders in PlWHolding, with PMAG as its listed subsidiary. Moreover, PMAG’s stake in KTM AG would increase to 98.2 percent. Bajaj Auto states that its Board of Directors accorded its in-principle approval to this proposal. The company’s statement states, “The parties will now process necessary clearances from the competition, take over & other authorities as may be required and depending on the outcome of clearances from the authorities concerned and of transaction negotiations/valuations, undertake next steps”.

On the other hand, in a separate statement, Pierer Mobility AG said that it will go ahead with preparations under the capital market law. As already mentioned, after the completion of the transaction, the shareholding of Pierer Mobility AG in the operating KTM AG will increase from the current 51.7 percent to 98.2 percent. The statement also said that the Pierer Group will continue to maintain sole control over Pierer Mobility AG.

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