KTM supremo Stefan Pierer’s parental holding company, Pierer Industrie, and Indian bike manufacturer Bajaj Auto have entered into discussions about the latter extending its participation to a significant shareholding and board role at group level in KTM Industries. BDN financial editor Roger Willis reports.
At the moment, Bajaj has a 48% stake in the group’s motorcycle and related component manufacturing arm KTM, comprising the KTM and Husqvarna bike brands along with WP Suspension. KTM Industries holds a controlling 51.7% of KTM’s shares. In turn, Pierer Industrie owns 62% of KTM Industries.
The proposal under assessment is for a transfer of Bajaj’s 48% slice of the action from KTM to KTM Industries, through a capital increase. This would leave Pierer still in majority control of KTM Industries, presumably by a similar proportion to the current state of affairs at the bike business. But KTM Industries would then have a 99.7% shareholding in that business.
Besides providing Pierer Industrie with additional funds to either load up its acquisitions war chest or pay down debt, such a transaction suggests that the free float of KTM Industries — which is listed on the Vienna and Zurich stock exchanges — might be eliminated and the company could go private.
Any explanation for why this move is being considered should be set against Stefan Pierer’s recently admitted desire to become a suitor for Ducati, should Volkswagen eventually decide to dispose of that particular non-core asset. Having cash-rich Bajaj more firmly on team would boost his endeavour substantially.  Â
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