Bajaj Auto to Strengthen Hold over KTM with $906 Million Debt Deal
Deal News | May 22, 2025 | Zawya
Bajaj Auto, an Indian automotive company renowned for its 'Pulsar' motorcycles, is set to take control of the Austrian motorcycle manufacturer KTM AG as part of a strategic $906.2 million debt deal. This move comes amidst KTM's severe liquidity challenges, after it filed for court restructuring proceedings. Bajaj, which has been a minority investor in KTM since 2007, plans to inject fresh capital and assume a strategic leadership role to restore KTM’s stability and operations. The restructuring deal involves Bajaj infusing 200 million euros and an additional commitment of 600 million euros to settle creditors' claims, with creditors receiving 30% of their claims by May 23. Bajaj Auto will gain a controlling stake in Pierer Bajaj AG, thereby indirectly controlling KTM's parent company, Pierer Mobility AG.
Sectors
- Automotive Industry
- Financial Services Industry
Geography
- India – Bajaj Auto, the company taking control of KTM, is headquartered in India.
- Austria – KTM AG, the company undergoing restructuring, is based in Austria.
Industry
- Automotive Industry – The industry is relevant because the article discusses Bajaj Auto and KTM AG, both of which are involved in the manufacture and sale of motorcycles.
- Financial Services Industry – The investment and debt restructuring discussed in the article involve financial maneuvers of capital injection and debt settlement, relevant to this sector.
Financials
- €800 million ($906.2 million) – Total debt deal amount Bajaj Auto is investing to take control of KTM AG.
- €200 million – Initial infusion by Bajaj Auto into KTM as part of the debt restructuring.
- €600 million – Additional commitment by Bajaj Auto to settle creditor claims and restart KTM's operations.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bajaj Auto | Buyer/Investor | Company | An Indian company known for manufacturing motorcycles, looking to take a controlling stake in KTM AG. |
| KTM AG | Target Company | Company | An Austrian motorcycle company that is undergoing financial restructuring and is the subject of Bajaj Auto's investment. |
| Pierer Bajaj AG | Unit of Bajaj Auto | Company | A unit of Bajaj Auto through which it will gain control. |
| Pierer Mobility AG | Parent of KTM AG | Company | The parent company of KTM AG, indirectly controlled through Bajaj's investment. |