Pierer Mobility AG (PMAG), the promoter and listed entity of the KTM group, was informed by Pierer Industrie AG and PTW Holding AG that an agreement in principle had been reached with Bajaj Auto and its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV).
Bajaj will contribute BAIHBV’s 46.5 percent stake in KTM AG to Pierer Mobility AG.
Pierer and Bajaj will initiate competition and takeover law consultations with the relevant authorities as well as the necessary valuations; PMAG, for its part, will go ahead with preparations under capital market law.
Depending on the outcome of the valuation process, the opinion of the Austrian Takeover Commission and the transaction negotiations as well as the clearance by the competition authorities, PMAG will carry out a capital increase through contribution in kind from the existing authorised capital of the company under exclusion of subscription rights by up to 50 percent of the existing share capital.
After completion of the transaction, the shareholding of PMAG in the operating KTM AG will increase from the current 51.7 percent to about 98.2 pecent. The Pierer Group will continue to maintain sole control over PMAG.