Bajaj Auto to acquire majority stake in KTM for €800M
What's the story
Bajaj Auto, one of India's leading motorcycle manufacturers, has announced its intention to acquire a majority stake in Austrian motorcycle brand KTM. The acquisition will be carried out through Bajaj Auto International Holdings BV (BAIHBV), the firm's wholly owned Netherlands-based subsidiary. The strategic move is aimed at strengthening Bajaj's presence in the global motorcycle market, especially in the premium and sports segment.
Funding details
Bajaj Auto secures €800 million to support KTM's revival
BAIHBV has raised €800 million in debt funding for KTM's business revival and debt restructuring. This includes a secured term loan of €450 million to KTM and convertible bonds worth €150 million issued by Pierer Bajaj AG, subscribed by BAIHBV. So far, €200 million has already been infused into the company with the rest of the amount (€600 million) being disbursed now.
Restructuring process
KTM's liquidity crisis and restructuring plan
KTM has been struggling with liquidity and had entered a self-administrative restructuring process in November 2024. The restructuring plan was approved by creditors on February 25, 2025, with a one-time payment of 30% of their claims due by May 23, 2025. The Austrian court has also approved this plan. Bajaj Auto's funding is expected to save KTM from insolvency and restart operations.
Strategic plans
Bajaj Auto's plans post-acquisition of KTM
After the acquisition, Bajaj Auto plans to improve KTM's governance and start a turnaround program. The company also intends to look for partnerships as part of its global growth strategy. This move marks a major shift for Bajaj from being a minority investor in KTM since 2007 to emerging as its majority stakeholder.