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The move aims to support KTM's ongoing restructuring and ensure its operational continuity amid financial distress. As part of the plan, BAIHBV has extended a 450 million euros (equivalent to Rs 4,365 crore) secured term loan to KTM AG and subscribed to 150 million euros (equivalent to Rs 1,455 crore) in convertible bonds issued by Pierer Bajaj AG (PBAG), bringing the total commitment to 600 million euros (equivalent to Rs 5,820 crore). This follows an earlier infusion of 200 million euros in shareholder debt, taking the overall funding to 800 million euros (approx. Rs 7,765 crore). These transactions are designed to meet a critical deadline, 23 May 2025, for settling 30% of creditor claims, as mandated by Austrian courts under KTM's approved restructuring plan. Failure to meet this deadline would push KTM and its subsidiaries into insolvency. Subject to regulatory approvals in Austria, Bajaj Auto plans to acquire controlling interest in PBAG, the parent of Pierer Mobility AG, which owns KTM AG. Currently, Bajaj indirectly holds a 37.5% stake in KTM through a layered structure involving PBAG and Pierer Mobility. The company's board has also decided to seek post-facto shareholder approval for these related-party transactions via postal ballot, in compliance with SEBI regulations. This development marks a shift in Bajaj's role from a minority investor to a strategic majority stakeholder in KTM, with plans to restructure governance, restore operations, and explore synergies under the joint development program already operating in India. Pending approvals, Bajaj Auto is expected to drive a turnaround strategy focused on operational revival, financial stability, and global brand growth for KTM. Shares of Bajaj Auto were down 1.62% at Rs 8551.15 on the BSE. Powered by Capital Market - Live News |