Bajaj Auto to Acquire Majority Stake in KTM AG, Expands Global Automobile Footprint

Bajaj Auto will become the biggest shareholder in KTM which will help the company boost its worldwide vehicle business with an €800 million acquisition and growth strategy backed by debt.

According to a disclosure posted to the stock market on May 22, Bajaj Auto intends to acquire a majority interest in Austrian premium motorcycle maker KTM AG. Making this move is a key step in Bajaj’s overseas expansion of its automobile business.

Using Bajaj Auto International Holdings BV as its subsidiary, the company obtained an €800 million debt funding package. The package will allow KTM to accomplish its debt restructuring approved by an Austrian court and restart its operations and capital management. Bajaj has put €200 million into KTM as a part of the deal.

Upon obtaining approval, Bajaj Auto will transition from being a minor shareholder in KTM to controlling the majority of shares. Experts predict that this decision will strengthen Bajaj's position in the premium two-wheeler vehicle market.

KTM will move ahead in India, following the programme with Bajaj, to manufacture, sell within the country and export motorcycles to over 80 countries. As a result, India now has a stronger position in the world’s automobile market.

Bajaj Auto expects the acquisition to help it become a bigger player in the worldwide motorcycle market and to ensure they continue to focus on new ideas and high quality in automobiles.