Bajaj Auto Moves to Gain Control of KTM in €800 Million Deal

Bajaj Auto has expressed its willingness to acquire a majority stake in KTM via its wholly owned subsidiary Bajaj Auto International Holdings (BAIHBV). BAIHBV is set to invest €800 million (around ₹7,765 crore).

Restructuring and debt support

Bajaj Auto, through its subsidiary BAIHBV, currently holds a 49.9% stake in Pierer Bajaj AG (PBAG), an Austrian firm that in turn owns about 75% of the publicly listed Pierer Mobility AG (PMAG) — the parent company of KTM AG. PMAG oversees brands such as KTM, Husqvarna, and GASGAS. Before the latest development, Bajaj’s effective stake in KTM was estimated at approximately 37.5%.

During November 2024, KTM AG along with two subsidiaries entered a court-monitored self-administration process due to liquidity pressure. A restructuring plan was approved by creditors, including a requirement for a 30% one-time cash settlement of claims by May 23, 2025. Missing the deadline would result in the end of self-administration and trigger formal insolvency proceedings.

€800 million debt package has been arranged by BAIHBV. From this about €200 million has already been infused as shareholder debt in four tranches during FY24 and April–May 2025. The remaining €600 million includes a €450 million secured loan extended to KTM AG and €150 million in convertible bonds issued by PBAG, which were subscribed to by BAIHBV.

Approvals

The acquisition is awaiting approval from Austrian regulatory authorities. BAIHBV has initiated an €80 million loan and share pledge agreement to prevent a potential foreclosure.

The company stated: “This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage, positions Bajaj Auto as a driving force in shaping the future of one of world’s most admired high performance motorcycle companies.”