Bajaj Auto swaps stake in KTM to get stake in Peerer Mobility
Prior to the current deal, Bajaj Auto and Peer Mobility AG (PMAG) held 48 per cent and 52 per cent stake in KTM AG, respectively. Bajaj’s stake was through its Netherlands-based subsidiary Bajaj Auto International Holdings BV (Baibhav). As part of the two-stage deal, Bajaj Auto has transferred 46.5 per cent of the total stake in KTM to PTW Holding AG, a majority shareholder in PMAG. In lieu of this, Baibhav has been given a 49.9 per cent stake in PTW Holding AG.
“In the second phase, 46.5 per cent of KTM shares held by PTW Holding AG will now be contributed as contribution to Peer Mobility AG (PMAG) against grant of new shares in terms of capital enhancement by way of contribution,” the company said. in a statement. After the completion of this deal, PMAG’s stake in KTM AG has increased from 51.7 per cent to about 98.2 per cent. The Peerer Group will retain sole control over the PMAG. On Wednesday, all the parties concerned have signed an agreement in this regard.
The Management Board of PMAG has resolved on Wednesday to execute the capital increase against a contribution in the aggregate amount of Euro 895 million (million in German), corresponding to 49.9 percent of the existing share capital, by using the authorized capital. . In this context, 11,257,861 shares will be issued at an issue price of EUR 79.50 per share, which is higher than the current share market price.
“Capital augmentation will be done exclusively against contribution to KTM shares by PTW Holding AG and subject to exclusion of membership rights of other shareholders. The capital increase will be implemented in the second half of October subject to the approval of the supervisory board,” the statement said.
Though the talks were started long back in 2019, it was put on hold later. However, in December 2020, Bajaj Auto has informed the exchanges that it has resumed talks with KTM’s parent Peer Mobility AG (PMAG) to swap its stake in KTM for a stake in PMAG. .
PMAG is one of the top motorcycle manufacturers in the premium segment with brands like KTM, Husqvarna and GasGas. The Austrian company is listed on exchanges in Vienna, Zurich and Frankfurt.
The tie-up between Bajaj Auto and KTM dates back to 2012, when it entered the Indian market through the launch of the 200 Duke. Currently, its product portfolio comprises around 11 products including the 390 Duke, RC 200 and RC 390. In addition, its product range includes motorbikes starting from 125 cc to 390 cc – which includes Sports, Street Naked, Adventures and Racing. .
As per reports, the domestic sales of KTM stood at 4,389 units in August 2021, down 38 per cent as compared to 7,116 units in August 2020, mainly on market anticipation that the company is expected to come up with its new RC range in the country. Is.
KTM and Husqvarna reportedly plan to enter the electric vehicle segment in India. It had already showcased an electric scooter (Vector) and an electric motorcycle (E-Pylane) at an international motor show in Munich.
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