India’s Bajaj Auto announced plans to take control of Austrian motorcycle maker KTM AG through an €800 million ($906.2 million) debt package. The deal marks a significant shift for Bajaj, transforming its role from a minority investor to a strategic leader in KTM’s operations.
KTM AG, which manufactures KTM and Husqvarna motorcycles, filed for court restructuring in November due to severe financial difficulties. Under the rescue plan, Bajaj Auto has already invested €200 million and will contribute an additional €600 million to settle creditor claims and revive operations. Creditors are expected to receive 30% of their claims in cash by May 23. The Indian motorcycle manufacturer will gain control through its unit, Pierer Bajaj AG, leading to indirect control of KTM’s parent company, Pierer Mobility AG. Bajaj Auto holds a 37.5% stake in KTM through its subsidiary, though the final ownership percentage post-deal remains undisclosed.
The two companies have an existing partnership in India for joint product development. This strategic move aims to align governance and inject fresh capital to restore KTM’s operations.
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