Bajaj and KTM will be jointly developing and manufacturing KTM 125cc bikes in India at Bajaj’s Chakan plant near Pune. The bike will be imported to the European market by the end of this year and will be launched in India in the year 2011. Products like the new KTM 125cc bike will be distributed by Bajaj in India and in markets like Sri Lanka, Bangladesh, Indonesia and Africa,” BAL said.
Bajaj Auto Limited has also announced that they will be increasing their stake further in European bike maker KTM. The company will increase its stake in KTM (or KTM Power Sports AG) from the current 31.92 percent to 35.67 percent by investing an additional 20 million euros. The company’s decision to hike its stake in KTM came as a participation in the 43 million euro capital increase exercise undertaken by the second largest bike maker in Europe.
CROSS Industries AG will still be the the majority shareholder of KTM Power Sports AG even after the capital increase against contribution in cash and in kind. The company has over 50 % of voting rights in KTM. Bajaj Auto International Holding B.V. is the second largest stakeholder now with 35.67 percent shares and Hofer Privatstiftung holds over 5 % of KTM Power Sports AG shares; the free float of stock amounts to 10 %.
“Bajaj Auto, has invested euro 20 million in this capital increase and consequently has increased its shareholding in KTM from 31.92 per cent to 35.67 per cent,” Bajaj Auto Managing Director Rajiv Bajaj said in a statement.
Bajaj had first picked up 14.9 per cent stake in KTM for around Rs 300 crore. The company increased its stake in the European bike maker to 25 per cent about a year later. The current hike in stakes to 35.67 percent amounts to about 120 crores in Indian rupees.
“Bajaj will distribute KTM products in India and in markets like Sri Lanka, Bangladesh, Indonesia and Africa,” BAL said.