Pune, May 21, 2025: Bajaj Auto, which held a 37.5% stake in Austria-based motorcycle, bicycle, and motorsports brand KTM Motors, intends to invest nearly €800 million in long-term debt to acquire majority ownership and control of the global firm, with a strong emphasis on global brand restructuring.
Bajaj Auto, which plans to emerge as a global force in the premium motorcycle segment, has seen an opportunity to take a controlling stake in KTM, which has been dealing with liquidity issues and even facing an insolvency case in the Austrian courts.
According to the agreement, Bajaj will fund this total €800 million debt package; €200 million has already been infused into the company so far, and the remaining €600 million is being done now, the company has said.
The maker of known high-performance motorcycles under the KTM, Husqvarna, and GASGASKTM AG brands will deposit these funds in court to avoid insolvency proceedings as part of KTM’s court-approved restructuring plan, with a critical May 23, 2025, deadline.
"Simultaneously, BAIHBV has arranged a debt funding package of €800 million to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM’s debt restructuring with the approval of the competent Court in Austria and infusing funds into the company to revive its operations and working capital cycle," a Bajaj Auto information note said
According to a regulatory filing, Bajaj Auto plans to fund this transaction through its wholly owned subsidiary, Bajaj Auto International Holdings.
BV (BAIHBV) will take control of the KTM business headquartered in Austria, subject to regulatory approvals.
The current transaction, according to Bajaj Auto, is to address the KTM business's acute liquidity challenges and enable a structured revival of the brand, which has a strong heritage and an acclaimed position globally.
"The proposed equity acquisition by Bajaj of a controlling stake in PBAG, and thus in PMAG/KTM (upon receipt of regulatory approvals), after exploring various other alternatives until recently, is a critical step in realigning governance to restore stakeholder confidence, paving the way for operational restructuring of the business, and creating flexibility for potential partnerships. The €800 million debt package seeks to address liquidity needs to meet creditor obligations under the approved restructuring plan and fund the restart of operations," Bajaj Auto said in a regulatory filing.
With this action and post-requisite approvals coming through, Bajaj plans to shift gears from hitherto being a dormant to a minority investor to a majority owner in the global KTM company, "while it continues to accelerate the thriving KTM business that is run out of India under the joint development programme, where it develops, makes, and sells in India as well as exports to 80 countries across the KTM network," Bajaj Auto has said.
This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a critical stage positions Bajaj Auto as a driving force in shaping the future of one of the world's most admired high-performance motorcycle manufacturers.
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