Bajaj Auto Ltd. is set to invest €150 million in Bajaj Auto International Holdings BV, which holds 49.9% stake in bankruptcy-bound KTM, for “investment needs”.
“We hereby inform that the Board of Directors, at its meeting held on 21 February 2025, have accorded approval to invest up to €150 million in Bajaj Auto International Holdings BV, Netherlands…in one or more tranches,” the company said in an exchange filing on Friday. The investment can be in the form of “equity capital/preference capital/loan—convertible or otherwise, as may be determined in the due course”.
KTM's debt restructuring process ends on Feb. 25.
On Nov. 13, 2024, Pierer Mobility announced “far-reaching restructuring and additional liquidity requirements” at KTM AG.
“The Executive Board is currently working on securing financing of KTM AG, in particular on bridge financing in the three-digit million range,” Pierer Mobility had said on its website.
“To this end, discussions are ongoing, both with core shareholder Pierer Bajaj AG and with existing financial creditors. The aim is to agree to a standstill agreement with the financial creditors involved for the duration of these discussions as the basis for the financial restructuring.”
Pierer Bajaj AG is an equal joint venture of Bajaj Auto International Holdings BV and Pierer Industrie AG. It holds 74.9% in Pierer Mobility AG, which owns motorcycle brands like KTM, GasGas, Husqvarna and CFMoto in China.
Pierer Mobility went on to file for bankruptcy on Nov. 29, 2024. The debt restructuring proceedings end on Feb. 25, 2025.
“No comments on the filing as of now,” a representative for Bajaj Auto told NDTV Profit, when asked if the funds are for rescuing KTM.
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