Bajaj Auto completes share-swap deal with Pierer Industries

The swap of shareholding is intended to simplify the shareholding structure with Bajaj, according to an announcement by Pierer Mobility AG.

Bajaj Auto's 100 per cent Netherlands subsidiary Bajaj Auto International Holdings BV (BAIHBV) has on July 26, 2021, contributed 46.5 per cent out of its approximately 48 per cent shares held in KTM AG to PTW Holding AG (the majority shareholder of PIERER Mobility AG), owned by the Pierer Group. In return, BAIHBV has been granted a 49.9 per cent stake in PTW Holding AG. 

This would be followed by, the 46.5 per cent KTM shares now held by PTW Holding AG contributed to PIERER Mobility AG against the granting of new shares (11,257,861 ) amounting to EUR 895 million,by way of a capital increase through contributions in kind. The issue price being EUR 79.50/share, which is higher than the current stock price. 

The capital increase will be executed, subject to the approval of the supervisory board, in the second half of October. The swap of shareholding is intended to simplify the shareholding structure with Bajaj, according to an announcement by Pierer Mobility AG.

Following the execution of this transaction, the shareholding of PIERER Mobility AG in the operating KTM AG will increase from currently around 51.7 per cent to around 98.2 per cent. The Pierer Group will continue to retain sole control over PIERER Mobility AG. 

Bajaj Auto also reported its sales figure for September 2021, which was 9 per cent down on a YoY basis at 4,02,021 units from 4,41,306 units sold in September 2020. However, as compared to August 2021, the total sales are higher by 7.7 per cent.

On Friday, October 1, 2021, the shares of Bajaj Auto are trading at Rs 3826.50 at 12.53 pm.