Bajaj Auto, India's second-largest two-wheeler maker, has tightened its hold on KTM Power Sports by buying another 6.3%, taking it stake in the Austrian motorcycle to a little over 47%.
ET learnt that the company purchased this stake from one of the key stake holders through an open market transaction recently. The purchase was made through Bajaj Auto International Holdings ( BAIHBV), a Netherlands-based wholly-owned subsidiary of Bajaj Auto.
A senior Bajaj official confirmed the development, but declined to share the details, as the firm is bound by confidentiality agreement.
Bajaj Auto is the second-largest shareholder in KTM Other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Bajaj Auto and KTM are working on a few joint development projects.
In a recent interview to ET, Rajiv Bajaj, MD, Bajaj Auto, said that the company doesn't want to become the majority shareholder.
'We will be buying more shares to up our stake from 40%. However, we do not want to be the majority stakeholder as to convey the perception of exclusivity and premiumness,' he said. It's better that Bajaj doesn't become its majority stake holder, Bajaj added.
Bajaj Auto, which picked up a stake in KTM in 2007 by buying a 14.5% stake for about Rs300 crore, has been consistently hiking its stake by buying more shares from the open market.
Even as the market for motorcycles in Europe and USA shrank by 5%, KTM successfully managed to increase its turnover last year by 13.4% to 526.8 million. The overall volumes for 2011 saw a jump 22.4% at 81,200 vehicles. Mirroring the rise in market share, the net profit has kept growing by 30.2% to 20.7 million.
The company's supervisory board has approved a five- year bond issue to raise 75 million subject to regulatory approval.
....more info
ET learnt that the company purchased this stake from one of the key stake holders through an open market transaction recently. The purchase was made through Bajaj Auto International Holdings ( BAIHBV), a Netherlands-based wholly-owned subsidiary of Bajaj Auto.
A senior Bajaj official confirmed the development, but declined to share the details, as the firm is bound by confidentiality agreement.
Bajaj Auto is the second-largest shareholder in KTM Other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Bajaj Auto and KTM are working on a few joint development projects.
In a recent interview to ET, Rajiv Bajaj, MD, Bajaj Auto, said that the company doesn't want to become the majority shareholder.
'We will be buying more shares to up our stake from 40%. However, we do not want to be the majority stakeholder as to convey the perception of exclusivity and premiumness,' he said. It's better that Bajaj doesn't become its majority stake holder, Bajaj added.
Bajaj Auto, which picked up a stake in KTM in 2007 by buying a 14.5% stake for about Rs300 crore, has been consistently hiking its stake by buying more shares from the open market.
Even as the market for motorcycles in Europe and USA shrank by 5%, KTM successfully managed to increase its turnover last year by 13.4% to 526.8 million. The overall volumes for 2011 saw a jump 22.4% at 81,200 vehicles. Mirroring the rise in market share, the net profit has kept growing by 30.2% to 20.7 million.
The company's supervisory board has approved a five- year bond issue to raise 75 million subject to regulatory approval.
....more info