The two-wheeler major and Pierer Industrie AG on Wednesday finalised a stake swap deal with PTW Holding to simplify the shareholding pattern in the Austrian bike maker KTM AG.
In a first step completed on Wednesday, Bajaj Auto International Holdings BV (BAIHBV) swapped 46.5% (out of its about 48%) stake in KTM AG, for a 49.9% stake in PTW Holding, thus becoming an equity holder along with Pierer Industrie in PTW Holding.In a second step PTW Holding will contribute the 46.5% stake in KTM AG to PIERER Mobility AG (PMAG) in exchange for 11,257,861 fresh shares in PMAG. This step approved by PMAG's management board is targeted for implementation before end of October 2021 on approval of the PMAG supervisory board.
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 EUR 895 million, corresponding to 49.9% in the existing share capital, by making use of the authorised capital. In this context 11,257,861 shares will be issued at an issue price of EUR 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 approval of the supervisory board, in the second half of October, the company said.
In July this year, Bajaj and Pierer announced that they had decided to carry out the share-swap agreement.
Bajaj Auto picked up a 14.5% stake in KTM in 2007 and since then steadily increased its stake the Austrian motorcycle maker.
Shares of Bajaj Auto were down 1.49% at Rs 3843.05. The stock hit a high of Rs 3902 and a low of Rs 3837.60 so far.
Bajaj Auto's standalone net profit jumped 101% to Rs 1,061.18 crore in Q1 FY22 from Rs 528.04 crore in Q1 FY21. Net sales soared 144.8% Y-o-Y to Rs 7,216.57 crore during the quarter.
Bajaj Auto is the world's third largest manufacturer of motorcycles and the largest manufacturer of three wheelers.
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