Wednesday, May 29, 2024
HomeNEWSINTERNATIONALPIERER PLAYS MUSICAL SHARES

PIERER PLAYS MUSICAL SHARES

Austrian motorcycling mogul Stefan Pierer’s holding company Pierer Industrie has rebooted discussions with India’s second-largest indigenous bike manufacturer Bajaj Auto, with a view to simplification of the latter’s shareholding structure with Pierer Mobility. BDN financial editor Roger Willis reports, with difficulty… 

Don’t hold your breath. This is complicated and it may take some time to get a grip. Pierer Industrie owns very slightly more than 60% of the shares in Pierer Mobility, a public company listed on stock exchanges in Frankfurt and Zurich. In turn, Pierer Mobility holds approximately 51.7% of the shares in KTM, an operating entity which actually makes and markets KTM, Husqvarna and GasGas motorcycles, plus various e-bicycle brands. Bajaj Auto International Holdings has an approximate 48% stake in KTM.

Pierer Mobility has been informed by Pierer Industrie and Bajaj that they are again assessing the possibility of transferring Bajaj’s slice of the KTM action to Pierer Mobility, with Pierer Industrie continuing to retain its controlling majority. Pierer Industrie and Bajaj will now evaluate the proposals in detail.

In preparation for this possible transaction, Pierer Industrie is to transfer its 60% of Pierer Mobility to “PTW Holding” through a contribution in kind, which will thus become a direct 60% shareholder of Pierer Mobility.

If a decision is taken to execute the transaction, Pierer Mobility will consider the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorised capital of the company. This would enable an increase of up to 50% of the existing share capital. 

When the music stops, Pierer Mobility will be sitting on approximately 99.7% of KTM’s unlisted shares, up from the current 51.7%. Pierer Industrie will retain a majority of Pierer Mobility’s listed shares, with Bajaj also holding a proportionate quantity. And there will presumably still be a modest free float changing hands between outside investors.

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