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Bajaj Auto to take control of KTM with $906 million rescue deal
KTM, which sells motorcycles under the KTM and Husqvarna brands across 80 countries, entered court-led restructuring proceedings last November.
KTM, which sells motorcycles under the KTM and Husqvarna brands across 80 countries, entered court-led restructuring proceedings last November.
Bajaj Auto is set to take control of Austrian motorcycle manufacturer KTM AG through a debt-led restructuring deal worth €800 million ($906 million), the Indian two-wheeler giant announced on Thursday.
The move marks a strategic shift for Bajaj, which has been a minority investor in KTM since 2007, and will now assume a leadership role in the troubled European brand’s turnaround. Bajaj manufactures the popular Pulsar range in India, as per a report by Reuters.
Reviving a Troubled Icon KTM, which sells motorcycles under the KTM and Husqvarna brands across 80 countries, entered court-led restructuring proceedings last November due to severe liquidity challenges. Under the plan, creditors are expected to receive 30% of their claims in cash by May 23.
Bajaj has already injected €200 million into KTM and will infuse another €600 million to settle outstanding dues and revive operations.
Stake and Structure The transaction will see Bajaj Auto take control of its European unit, Pierer Bajaj AG, through which it will indirectly control KTM’s parent company, Pierer Mobility AG. While Bajaj currently holds a 37.5% stake in the KTM business, how much this will rise post-deal has not yet been disclosed.
KTM and Bajaj have long collaborated on product development and manufacturing in India, with several co-developed models exported globally.
Bajaj Auto has not responded to media queries regarding the final ownership structure or timeline for operational changes.
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