Pune (Maharashtra) [India], July 27 (ANI): Bajaj Auto's Netherland subsidiary will swap 46.5 per cent out of its 48 per cent stake in KTM AG for a stake in PTW Holding (100 per cent subsidiary of Pierer lndustrie), thus becoming an equity holder along with Pierer lndustrie in PTW Holding.
The agreement by Bajaj Auto International Holdings BV (BAIHBV) in its Austrian partner Pierer Industrie AG will simplify shareholding pattern in bike maker KTM through a two-step transfer of their stakes to a new holding company.
Earlier, Pierer Mobility AG (PMAG) and BAIHBV held 51.7 per cent and 48 per cent respectively in KTM AG. After completion of both steps, Pierer lndustrie and BAIHBV will be stake holders in PTW Holding with PMAG as its listed subsidiary.
PMAG's stake in KTMAG will stand increased to 98.2 per cent and continue to hold the other entities, Pierer E-bikes and Kiska GmbH.
Bajaj Auto said its board of directors has accorded in-principle approval to the proposal and directed that it is conveyed to its wholly-owned subsidiary BAIHBV.
"Parties will now process necessary clearances from competition, take over and other authorities as may be required and depending on the outcome of clearances from the authorities concerned and of transaction negotiations/valuations, undertake next steps," the company said in regulatory filings at stock exchanges.
In a separate statement, Pierer Mobility AG said it will go ahead with preparations under the 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, Pierer Mobility AG will carry out a capital increase through contribution in kind from the existing authorized capital of the company under exclusion of subscription rights by up to 50 per cent of the existing share capital," it added.
Bajaj Auto is the world's third largest manufacturer of motorcycles and the largest manufacturer of three-wheelers. It has a market capitalisation of Rs 1.1 lakh crore which is nearly double of the next largest two-wheeler company in India. (ANI)