Bajaj Auto to swap stake in KTM for a slice of parent Pierer Mobility

f1fan5 · 27th July 2021, 16:04

https://economictimes.indiatimes.com...w/84788054.cms

PTW holding(Pierer group) owns 60% of Pierer Mobility. In turn Pierer Mobility and Bajaj own 51.7% and 48% of KTM respectively. Bajaj will swap 46.5% of it's KTM shares for a stake in PTW holding. So, Pierer Mobility will now own 98.2%(which was previously 51.2%) of KTM. Bajaj will now be a stakeholder in the parent company PTW holding.
It is yet to be determined how much stake Bajaj will get in PTW Holding in exchange for its KTM shareholding.

Thus, after the conclusion of the deal, Bajaj Auto will become an indirect stakeholder in PMAG, which controls not just KTM but Husqvarna, Ramon, Gas Gas, WP suspension, Kiska, etc.

All in all its a win for Bajaj as it gets more control over the brands along with KTM.

VijayAnand1 · 28th July 2021, 18:28

A clever move by Bajaj albeit a complex one. I am no Dalal Street expert, but the advantages over the long term definitely weighs in favor of Bajaj, when considering expanding its portfolio. Bajaj can now influence PMAG positively owing to KTM's success in India and ASEAN countries. End result? We can expect better alternate off-road madness marquees like Gas Gas, KTM's own marquees at a competitive price.

Now, with the grapevine about Bajaj-Triumph's lovechild finally in the prototype stages, it's interesting to know how that relationship will unfold.

Global products, all brewing in India. What fantastic times we're witnessing.

Cheers!
VJ

27th July 2021, 16:04	#1
f1fan5 BHPian Join Date: Jun 2021 Location: Bhubaneswar Posts: 77 Thanked: 237 Times	Bajaj Auto to swap stake in KTM for a slice of parent Pierer Mobility https://economictimes.indiatimes.com...w/84788054.cms PTW holding(Pierer group) owns 60% of Pierer Mobility. In turn Pierer Mobility and Bajaj own 51.7% and 48% of KTM respectively. Bajaj will swap 46.5% of it's KTM shares for a stake in PTW holding. So, Pierer Mobility will now own 98.2%(which was previously 51.2%) of KTM. Bajaj will now be a stakeholder in the parent company PTW holding. It is yet to be determined how much stake Bajaj will get in PTW Holding in exchange for its KTM shareholding. Thus, after the conclusion of the deal, Bajaj Auto will become an indirect stakeholder in PMAG, which controls not just KTM but Husqvarna, Ramon, Gas Gas, WP suspension, Kiska, etc. All in all its a win for Bajaj as it gets more control over the brands along with KTM.
	(8) Thanks

28th July 2021, 18:28	#2
VijayAnand1 Senior - BHPian Join Date: Oct 2013 Location: Stickn' Around Posts: 1,283 Thanked: 3,563 Times	Re: Bajaj Auto to swap stake in KTM for a slice of parent Pierer Mobility A clever move by Bajaj albeit a complex one. I am no Dalal Street expert, but the advantages over the long term definitely weighs in favor of Bajaj, when considering expanding its portfolio. Bajaj can now influence PMAG positively owing to KTM's success in India and ASEAN countries. End result? We can expect better alternate off-road madness marquees like Gas Gas, KTM's own marquees at a competitive price. Now, with the grapevine about Bajaj-Triumph's lovechild finally in the prototype stages, it's interesting to know how that relationship will unfold. Global products, all brewing in India. What fantastic times we're witnessing. Cheers! VJ
	(3) Thanks