The ownership structure of KTM in Austria is a pyramid, with Stefan Pierer's Pierer Industrie AG holding approximately 62% of the shares of its subsidiary, KTM Industries AG. In turn, KTM Industries AG holds approximately 51.7% of the shares of another subsidiary, KTM AG, the company that actually manufactures KTM (and Husqvarna) motorcycles – with Indian conglomerate Bajaj Auto International Holdings BV holding the other (approximately) 48% of the shares of KTM AG.
The news coming out of the group is of discussions about the possibility of transferring Bajaj´s 48% stake in KTM AG up a level to KTM Industries AG, with the Pierer Group continuing to retain the controlling majority ownership share in KTM Industries AG.
The second quarter of 2019 is being targeted as a date by which a decision as whether or not such a transaction will take place should be taken – the two parties are currently evaluating the idea in detail.
If Pierer Industrie AG and Bajaj do decide to execute the transaction, KTM Industries AG will examine the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorised capital of the company. The authorised capital enables a capital increase of up to 50% of the existing share capital. If the transaction is executed, the stake in KTM AG held by KTM Industries AG will increase from the current 51.7% to approximately 99.7%.
