Bajaj Auto has acquired additional 6.3% stake in Austria based KTM Power Sports AG, taking its stake to around 47%.
According to reports, Bajaj Auto purchased stake through its Netherlands-based wholly-owned subsidiary - Bajaj Auto International Holdings in an open market transaction.
Bajaj Auto is the second-largest shareholder in KTM, while the other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake.
Both companies have an arrangement with them under which they can go up to acquiring 49% stake in KTM and Bajaj can acquire the stake only through open market.
In 2007, Bajaj picked up a 14.9% stake in KTM for around Rs300 crore. A year later, it increased its stake in the European bike-maker to 25% and has been increasing it gradually.
KTM Power Sports AG engages in the development, production, and distribution of motorized recreational vehicles and sports cars. It primarily offers race-ready off-road and street motor cycles, as well as ATVs primarily under the KTM and HUSABERG brand names.
In 2008 , Cross Industries - the holding company of KTM also signed an agreement for jointly developing 125-cc bikes, which will be built at Bajaj's Chakan plant near Pune for exports to the European market under the KTM brand. Bajaj-KTM have already launched KTM Duke 200 in India this January and are working towards foraying into Brazil and the other emerging markets such as Malaysia and Indonesia.
....more info
According to reports, Bajaj Auto purchased stake through its Netherlands-based wholly-owned subsidiary - Bajaj Auto International Holdings in an open market transaction.
Bajaj Auto is the second-largest shareholder in KTM, while the other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake.
Both companies have an arrangement with them under which they can go up to acquiring 49% stake in KTM and Bajaj can acquire the stake only through open market.
In 2007, Bajaj picked up a 14.9% stake in KTM for around Rs300 crore. A year later, it increased its stake in the European bike-maker to 25% and has been increasing it gradually.
KTM Power Sports AG engages in the development, production, and distribution of motorized recreational vehicles and sports cars. It primarily offers race-ready off-road and street motor cycles, as well as ATVs primarily under the KTM and HUSABERG brand names.
In 2008 , Cross Industries - the holding company of KTM also signed an agreement for jointly developing 125-cc bikes, which will be built at Bajaj's Chakan plant near Pune for exports to the European market under the KTM brand. Bajaj-KTM have already launched KTM Duke 200 in India this January and are working towards foraying into Brazil and the other emerging markets such as Malaysia and Indonesia.
....more info