Bajaj Auto To Acquire KTM Via €800 Million Debt Package Amid Restructuring

Bajaj Auto Ltd. on Thursday said it will acquire debt-ridden Austrian motorcycle maker KTM through a debt package worth €800 million (₹77.60 billion), as the company looks to revive the struggling brand and gain a controlling stake. The deal will be routed through its Netherlands-based wholly-owned arm, Bajaj Auto International Holdings BV, the company said in an exchange filing.

Bajaj, which already has a minority interest in KTM, said it has infused €200 million and is currently deploying the remaining funds to support KTM’s creditors and stabilise operations. The funding package is aimed at easing liquidity stress and rebooting the working capital cycle of the Austrian bike maker.

KTM, known for its KTM, Husqvarna, and GASGAS brands, has been undergoing debt restructuring since November. Bajaj expects Austrian authorities to confirm the restructuring plan by mid-June, after which payments to creditors will be processed.

Following regulatory approvals, Bajaj intends to take sole control of Pierer Bajaj AG, a joint venture that currently owns around 75% of KTM’s listed holding firm, Pierer Mobility AG. Bajaj’s current indirect stake in KTM stands at around 37.5%.

As part of the turnaround plan, Bajaj also committed to paying €80 million to Dabepo Holding under a loan and share pledge agreement. This move clears a key hurdle to restructuring and paves the way for board reconstitution at KTM, Bajaj said.

Bajaj Auto said the takeover positions it to unlock a “triad of opportunity” in global growth, brand elevation, and technology leadership.