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Bajaj Auto Limited has acquired additional 6.3% stake in Austria based KTM Power Sports AG, taking its stake to around 47%.
According to ET, 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 R300Cr. 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.
Source: DealCurry.com : Bajaj Auto Acquires Additional 6.3% In KTM Power Sports
According to ET, 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 R300Cr. 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.
Source: DealCurry.com : Bajaj Auto Acquires Additional 6.3% In KTM Power Sports
) as stated above (or how I make of it) it can own a maximum of 49%, which again has to be through open market only.
Given that 47% was all that left in the open market, guess this is where Bajaj's increments in the stake stop.
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