Bajaj Auto to acquire KTM with an 800 million euro investment

Currently, Bajaj Auto holds a 37.5% stake in KTM through PBAG and Pierer Mobility.

Bajaj Auto is set to acquire a majority stake in the Austrian motorcycle maker KTM through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV).

BAIHBV has committed a total investment of 800 million euros, which includes a 450 million euro secured term loan to KTM AG, 150 million euros via convertible bonds in Pierer Bajaj AG (PBAG) and 200 million euros already infused as shareholder debt.

KTM entered into a self-administrative restructuring process in November 2024, after liquidity challenges could not service the spiralling debt and working capital constraints. To address this, Bajaj Auto proposed to acquire a controlling stake in PBAG and, therefore, in PMAG/KTM, subject to regulatory approvals.

The company seeks to address liquidity needs to meet creditor obligations as per the restructuring plan and fund the restart of operations with the 800 million euro debt package.

Currently, Bajaj Auto holds a 37.5% stake in KTM through PBAG and Pierer Mobility.