Swapping stakes in KTM for a reasonable share in Pierer Industries on cards for Bajaj
Bajaj holds a 48 per cent stake in KTM AG which they are looking forward to swapping for a reasonable share in KTM Industries AG which is the mother company of Husqvarna Motorcycles, KTM and WP.
The deal is yet to be finalised, Bajaj and Pierer Industries which holds a majority stake in KTM industries are looking for a plan to execute it without hampering the current portfolio of all the motorcycle manufacturers involved. If the deal works out for all the companies, it is said to be completed by mid-2019.
"If Pierer Industrie AG and Bajaj decide to execute the transaction, KTM Industries AG will examine the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorised capital of the company. The authorised capital enables a capital increase of up to 50% of the existing share capital," said the report.
In their 12 years long partnership, KTM and Bajaj have benefitted from each other. From sharing features as backlit switches to the engine designs.
"If Pierer Industrie AG and Bajaj decide to execute the transaction, KTM Industries AG will examine the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorized capital of the Company. The authorized capital enables a capital increase of up to 50% of the existing share capital. If the transaction is executed, the Company's stake in KTM AG would increase from the current 51.7% to approximately 99.7%." the report added.
Starts Rs 87,827
- News2019 Euro NASCAR: Advait Deodhar scores rookie podium despite difficult season-opener
- FeaturesIndian Election Campaign Vehicles (IECV)
- NewsHyundai Venue: How does it stack up against the competition?
- NewsLimited edition Aston Martin DBS 59 pays homage to the company's 1959 win at Le Mans
- NewsTata Altroz spotted on test in Mumbai - India launch soon
- Wedding Photography Symposium
- Sony Better Photography Wedding Photographer of the Year 2018-19 Awards Night
- Sony BP WPOY 2018-19: Top 10 in The Joy of Light by Photoquip