Bajaj Auto is set to buy a majority stake in Austrian premium motorcycle manufacturer KTM AG, the company announced through a stock market filing on Thursday, May 22.
Bajaj Auto International Holdings BV (BAIHBV) has arranged a debt funding package of €800 million to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM’s debt restructuring with the approval of the competent Court in Austria and infusing funds into the company to revive its operations and working capital cycle.
Out of this €800 million debt package, €200 million has already been infused into the company so far, Bajaj Auto said.
The company will continue to accelerate KTM business that is run out of India under the joint development programme, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network, it added.
Shares of Bajaj Auto closed at Rs 8,733.8 per share, up 0.48 per cent on BSE today, May 22.
