Bajaj Auto announces change in KTM shareholding pattern with Pierer Industrie AG - check how this impacted stock price

In an apparent change in shareholding pattern in KTM, Bajaj Auto on Monday has said that the company has reached an agreement its Austrian partner Pierer Industrie AG for simplifying their stake in the premium bike maker KTM through a two-step transfer of their stakes to a new holding company.

According to the filing of Bajaj Auto to exchanges, the two-wheeler maker said, “Currently, PIERER Mobility AG PMAG and Bajaj Auto International Holdings BV (BAIHBV) approximately hold 51. 7 and 48 per cent in KTM-AG respectively.

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In addition to the above stake in KTMAG, PMAG further holds: 100 per cent in Pierer E-Bikes, the maker of conventional and electric bicycles, under Ramon, Husqvarna and Gas Gas brands, and a 50 per cent stake in Kiska GmbH - a top-notch design cum marketing organization and stakes in a few other small sized companies in IT, Digital marketing areas, Bajaj Auto further said.

Pierer Industrie AG holds over 65.29 per cent in PMAG.

As per the changed shareholding agreement, BAIHBV will swap 46.5 per cent out of its 48 per cent stake in KTM AG, for a stake in PlW Holding, a 100 per cent subsidiary of Pierer lndustrie, the two-wheeler major said in a regulatory filing.

As a second step, PlW Holding will later contribute its 46.5 per cent stake in KTM AG to PMAG, for fresh shares to be issued by PMAG in lieu.

"After completion of both steps, Pierer lndustrie and BAIHBV will be stakeholders in PlWHolding, with PMAG as its listed subsidiary," it added. Subsequently, PMAG's stake in KTM AG would stand increased to 98.2 per cent.

Bajaj Auto said its Board of Directors accorded its in-principle approval to this proposal. "BAIHBV's Board at its meeting on 26th July, considered the proposal and also noted its shareholders' in-principle approval," the filing said.

It further said, "Parties will now process necessary clearances from the 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 shares of Bajaj Auto are trading flat with marginal growth of 0.3 per cent to Rs 3848 per share on the BSE at around 12:11 pm, as compared to a 0.03 per cent fall in the S&P BSE Sensex on Tuesday.