Bajaj Auto to swap KTM stake for shares in parent company

According to a media report, Bajaj Auto is planning to swap its stake in KTM AG for shares in its parent company KTM Industrie AG.

Bajaj is reportedly in talks with Pierer Industrie AG, which is the majority shareholder of KTM Industrie. Bajaj currently controls 48% stake in the Austrian bike maker KTM, while KTM Industrie has around 51.7% stake. Bajaj is planning to swap its share for an equivalent stake in the parent company. This would increase the parent company's stake in KTM AG from 51.7% to 99.7%, while Pierer Industrie will continue to hold 62% stake in KTM Industrie.

Reports suggest that the amount of shares that Bajaj Auto could get in KTM Industrie is sill being calculated. The final decision is expected to be taken in Q2 2019 only after the legal and economic requirements and the capital increase in KTM Industrie are examined.

Source: Bloomberg