Further Investment in KTM by Bajaj Auto
Baja Auto, one of India's largest motorcycle manufacturers, recently bought another 6.3 percent stake in KTM of Austria, thereby raising their total stake to just over 47 percent. The deal was made through Bajaj Auto International Holding, a wholly owned subsidiary of Bajaj Auto based in the Netherlands.Although Bajaj official have confirmed the deal, no details have been divulged as yet. Stefan Pierer (KTM CEO) and Rudolf Knünz (Managing Director of Knünz GmbH and Chairman of the Supervisory Board at KTM) hold together about 51% stake in KTM.
It may be recalled that Bajaj Auto began investing in KTM in 2007 when the Idian company bought 14.5 percent stake in the Austrian company and since then Baja have been consistently investing in KTM.
Rajiv Bajaj said in a recent interview that the company had no intentions to become the controlling stake-holder in KTM. However, going by Bajaj's constant investment in KTM, it seems that Bajaj might just end up being the controlling authority of KTM in the near future.
