Bajaj Auto to acquire majority stake in KTM

India’s two-wheeler major Bajaj Auto on Thursday said that it will acquire majority control of Austrian motorcycle company KTM AG through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). The move comes as KTM is undergoing a restructuring process amid an acute financial crisis.

As part of the acquisition plan, BAIHBV has committed €800 million (approximately Rs 7,765 crore) in funding. This includes a €450 million (Rs 4,365 crore) secured term loan to KTM AG and €150 million (Rs 1,455 crore) in convertible bonds issued by Pierer Bajaj AG (PBAG). The investment follows an earlier infusion of €200 million in shareholder debt.

Bajaj Auto believes that the acquisition will aid KTM’s ongoing restructuring, ensure operational continuity, and help expand Bajaj’s global reach in the motorcycle market.

“With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network,” said Bajaj Auto in a statement.