Bajaj Auto and the promoters of KTM have finalised a share swap deal which would lead to the Indian company hold stake in a KTM Group company that holds equity in a listed entity of the Austrian bike maker.
Bajaj Auto International Holding BV (BAIHBV) has swapped 46.5 percent (out of its about 48 percent) stake in KTMAG, for a 49.9 percent stake in PTW Holding, thus becoming an equity holder along with Pierer lndustries in PTW Holding.
PTW Holding currently owns 60 percent in the listed entity Pierer Mobility AG (PMAG). After the share swap deal is completed, PTW Holding will increase this stake to 73.3 percent.
In a second step, PTW Holding will contribute a 46.5 percent stake in KTMAG to PMAG in exchange for 11,257,861 fresh shares in PMAG. This step approved by PMAG's management board on September 29, is targeted for implementation before the end of October 2021 on approval of the PMAG Supervisory Board.
The management board of PMAG has resolved to execute a capital increase against contribution in kind in the total amount of Euro 895 million, corresponding to 49.9 percent of the existing share capital, by making use of the authorised capital. In this context, 11,257,861 shares will be issued at an issue price of Euro 79.50 per share, which is higher than the current stock market price.
“The capital increase will be carried out exclusively against contribution in kind of KTM shares by PTW Holding AG and under exclusion of subscription rights of the other shareholders. The capital increase will be executed, subject to the approval of the supervisory board, in the second half of October,” PMAG said in a statement.
Following the execution of this transaction, the shareholding of PMAG in the operating KTM AG will increase from currently around 51.7 percent to around 98.2 percent. The Pierer Group will continue to retain sole control over PMAG.
