Bajaj Auto To Transfer Stakes From KTM AG To KTM Industrie: Details & Benefits Explained

Bajaj Auto is looking at transferring its stakes from KTM AG to KTM Industrie. KTM Industrie is the parent company of KTM AG and currently owns 51.7 percent of it while Bajaj Auto owns the other 48 percent.

Under the new plans, Bajaj will transfer its stakes from KTM AG to KTM Industrie, which will bring KTM AG completely under the umbrella of KTM Industrie and the parent company will partially be under Bajaj.

Bajaj Auto To Push Stakes From KTM AG To KTM Industrie

Back in 2007, Bajaj Auto had bought a 14.5 percent stake in KTM AG and by the end of 2013, Bajaj had upped the stakes and had purchased a 48 percent stake in KTM AG. It was after this that Bajaj started manufacturing KTM bikes in India and KTM then became extremely successful across the world.

There were rumours that Bajaj would step in and acquire KTM completely. However, with the new plan, Bajaj probably has something more in mind. The decision to shift stakes from KTM AG to KTM Industrie came after Bajaj Auto and Pierer Industrie held discussions about the companies and their future.

Bajaj Auto To Push Stakes From KTM AG To KTM Industrie

Pierer Industrie was founded by KTM CEO Stefan Pierer and it owns KTM Industrie. KTM Industrie is the biggest European motorcycle manufacturer and it focuses on sport motorcycles and electric mobility

Under the KTM Industrie banner is KTM AG - the motorcycle company we all love, Husqvarna and WP Suspension. All three companies can be considered leaders in their respective segments and are doing extremely well.

When Bajaj's shares get transferred to KTM Industrie, the company will get 99.7 percent control in KTM AG. Bajaj on the other hand will get a large stake in KTM industrie. The exact percentage is unknown at the moment and precise figures will be revealed soon.

Bajaj Auto To Push Stakes From KTM AG To KTM Industrie

What does this deal mean for each company involved?

KTM AG will end up being owned wholly by KTM Industrie. KTM Industrie on the other hand will end up being split between Pierer Industrie and Bajaj Auto. Pierer Industrie will gain lots of finances through Bajaj Auto and Bajaj Auto will get more motorcycles and rights to their technology under its banner.

Bajaj Auto stands to gain a lot through this deal as It would directly become the parent company of KTM AG, Husqvarna Motorcycles and WP Suspension.

Thoughts On Bajaj Auto's Plans To Transfer Shares From KTM AG To KTM Industrie

Bajaj Auto's purchase of 14.5 percent stake in KTM AG back in 2007 was the turning point for Bajaj and KTM. The two companies have since then grown to a whole new level and have together become one of the most revered two-wheeler associations in History.

The new deal with Pierer Industrie for acquisition of stakes in KTM Industrie is yet another turning point for Bajaj Auto. Through this acquisition, Bajaj will get access to Husqvarna Motorcycles, WP suspension and KTM AG as a direct parent.

The design sub-division of KTM, which has so far made the KTM X-Bow too would be under Bajaj. Bajaj will have access to some of the best suspension systems in the world through WP Suspension and together, these companies could become near invincible. Also, this deal could allow the completely localised production of Husqvarna motorcycles in India.

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Read more on: #ktm #auto news
Article Published On: Tuesday, March 26, 2019, 13:32 [IST]

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