KATHMANDU: Bajaj Auto has received approval from the Austrian Takeover Commission to take control of Pierer Mobility AG (PMAG), the parent company of KTM.
The approval gives Bajaj a “restructuring privilege,” allowing it to gain control without making a public offer to other shareholders.
According to Bajaj, its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV), will now take full control of PMAG. The Austrian regulator said the deal qualifies as a restructuring move to support KTM’s financial recovery, so Bajaj is exempted from the usual public offer rule under Austrian law.
Bajaj currently owns 49.9% of Pierer Bajaj AG (PBAG), the joint holding company that controls PMAG, while Pierer Industrie AG (PIAG) holds 50.1%. Bajaj plans to buy all 50,100 shares from PIAG, giving it full ownership of PBAG and, indirectly, PMAG and KTM.
The two companies have been partners since 2007. Bajaj manufactures several KTM and Husqvarna motorcycles at its Chakan plant in Pune and exports them to over 60 countries.
Bajaj said it has now received all required approvals from Austrian and other regulators. The Austrian Takeover Commission’s approval was the final major step.
To protect minority investors, Bajaj must report the completion of the takeover, publish the change of control, and disclose related-party transactions until the end of 2026.
Earlier this year, Bajaj provided financial help to KTM worth about $870 million to support its restructuring and avoid insolvency. This included $490 million as a secured loan, $160 million in convertible bonds, and $220 million in earlier aid. The funds helped KTM pay creditors by the May 2025 deadline under its court-approved plan.
KTM entered a self-managed restructuring process in late 2024 after facing severe financial and operational problems. Bajaj’s timely support helped KTM continue production, protect jobs, and aim to exit court supervision by mid-2025.
Hansraj Hulaschand & Co. Pvt. Ltd is the sole authorized distributor for Bajaj and KTM motorcycles in Nepal. The company offers a wide range of models from both brands and handles sales, service, and spare parts across the country. It also has a vast distribution and service network nationwide.
