New Delhi: Bajaj Auto and Pierer Industrie AG on Wednesday finalised a stake swap take care of PTW Holding to simplify the shareholding sample within the Austrian bikemaker KTM AG. “Under the new agreement, Bajaj Auto International Holdings BV (BAIHBV) swapped 46.5% (out of its 48%) stake currently held in KTM AG to PTW Holding AG,” Bajaj Auto mentioned in a notification to exchanges.
In return, BAIHBV has been granted a 49.9% stake in PTW Holding AG and have become an fairness holder together with Pierer lndustrie in PTW Holding, the two-wheeler producer added.
BAIHBV is Netherlands-based subsidiary of Bajaj Auto International Holdings BV.
PTW Holding AG is almost all shareholder of Pierer Mobility AG, owned by the Pierer Group.
“In a second step, the 46.5% KTM shares now held by PTW Holding AG will be contributed to Pierer Mobility AG against the granting of new shares in the context of a capital increase through contributions in kind,” Bajaj Auto acknowledged.
“The capital increase will be carried out exclusively against contribution in kind of KTM shares by PTW Holding AG and under exclusion of subscription rights of the other shareholders. The capital increase will be executed, subject to the approval of the supervisory board, in the second half of October,” it talked about in its notification.
Bajaj additional mentioned that after the execution of this transaction, the shareholding of Pierer Mobility AG within the working KTM AG will improve from at the moment round 51.7% to round 98.2%. The Pierer Group will, nevertheless, proceed to retain sole management over Pierer Mobility AG.
The Bajaj-KTM partnership began in 2012 when it forayed into the Indian market with the launch of Duke 200.