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Bajaj hikes stake in KTM to 38%

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 6:21 AM IST

The country's second-largest two-wheeler maker, Bajaj Auto, today said it has raised its stake in European bike-maker KTM to 38.09 per cent for an undisclosed amount.

"Bajaj Auto International Holdings BV Netherlands (BAIHBV), a 100 per cent subsidiary of Bajaj Auto Ltd, purchased further 2,44,600 shares in KTM Power Sports AG (KTMPS) on November 3, 2010," the domestic firm said in a statement.

The company, however, did not disclose the amount it spent to acquire the additional stake.

Bajaj Auto had a 35.67 per cent stake in KTM before the latest transaction. Both firms are already jointly developing products for Indian and European markets.

In 2007, Bajaj picked up a 14.9 per cent stake in KTM for around Rs 300 crore. A year later, it increased its stake in the European bike-maker to 25 per cent.

Later, the Pune-based company raised its holding to 31.92 per cent in KTM and then hiked it further by participating in a 42.99 million euro equity issue by the European bike maker.

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Giving details on the progress of joint development activities, Bajaj Auto said: "The first of the co-developed products, KTM Duke 125, will hit European markets in 2011."

It further said KTM products will be launched in India during the second half next year.

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First Published: Nov 03 2010 | 8:43 PM IST

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