Bajaj Auto is set to acquire a majority stake in Austrian motorcycle giant KTM through its Netherlands-based arm, Bajaj Auto International Holdings BV (BAIHBV), with a massive €800 million investment.
The funding package includes a €450 million secured term loan to KTM AG, €150 million via convertible bonds in Pierer Bajaj AG (PBAG), and €200 million already injected as shareholder debt. This strategic move aims to stabilize KTM’s finances and resume operations.
KTM has been navigating a self-administered restructuring process since November 2024, after mounting debts and liquidity issues disrupted business. Bajaj’s investment will help fulfill creditor commitments and reboot KTM’s operations, pending regulatory clearance.
Currently, Bajaj holds a 37.5% stake in KTM through its ties with PBAG and Pierer Mobility. This new investment will likely shift control in Bajaj’s favor, reinforcing its role as a key player in KTM’s future.
