Pune-based two-wheeler manufacturer Bajaj Auto and Austrian Pierer Group have simplified the shareholding structure in the operating KTM AG.
On Monday, Bajaj Auto (India) and its subsidiary Bajaj Auto International Holdings B.V. (the Netherlands) - BAIHBV and the Pierer Group signed the corresponding contracts.
Till now, Bajaj Auto held a 48% stake in the KTM AG via its Netherlands-based subsidiary BAIHBV, while Pierer used to hold the remaining stake in the premium two-wheeler brand.
In the recent swap share deal, BAIHBV has contributed 46.5% out of its 48% shares currently held in KTM AG to PTW Holding AG (the majority shareholder of PIERER Mobility AG) owned by the Pierer Group. In return, BAIHBV has been granted a 49.9% stake in PTW Holding AG.
With this, Bajaj will become an indirect stakeholder in other brands of Austrian partners such as Husqvarna, Gas Gas and Ramon.
“In a second step, the 46.5% KTM shares now held by PTW Holding AG will be contributed to PIERER Mobility AG against the granting of new shares in the context of a capital increase through contributions in kind,” the company said in a statement.
Following the execution of this transaction, the shareholding of PIERER Mobility AG in the operating KTM AG will increase from currently around 51.7% to around 98.2%. The Pierer Group will continue to retain sole control over PIERER Mobility AG.
The Management Board of PIERER Mobility AG has resolved to execute a capital increase against contribution in kind in the total amount of € 895 million, corresponding to 49.9% of the existing share capital, by using the authorised capital.
In this context, 11,257,861 shares will be issued at an issue price of € 79.50 per share, which is higher than the current stock market price.
The capital increase will be carried out exclusively against contribution in kind of KTM- shares by PTW Holding AG and under exclusion of subscription rights of the other shareholders. The capital increase will be executed, subject to the supervisory board's approval, in the second half of October.