New Delhi, Jul 26: Bajaj Auto Ltd on Monday mentioned it has reached an settlement its Austrian accomplice Pierer Industrie AG for simplifying their shareholding sample in premium bike maker KTM via a two-step switch of their stakes to a brand new holding firm.
Earlier, PIERER Mobility AG (PMAG) and Bajaj Auto's 100 per cent Netherlands subsidiary, Bajaj Auto International Holdings BV (BAIHBV), held 51.7 per cent and 48 per cent respectively in KTM AG. Pierer Industrie AG holds over 65.29 per cent in PMAG. Tesla Restarts Deliveries of Model S: Report.
Under the settlement, BAIHBV will swap 46.5 per cent out of its 48 per cent stake in KTM AG, for a stake in PlW Holding, a 100 per cent subsidiary of Pierer lndustrie, Bajaj Auto mentioned in a late night time regulatory submitting.
As a second step, PlW Holding will later contribute its 46.5 per cent stake in KTM AG to PMAG, for contemporary shares to be issued by PMAG in lieu.
"After completion of both steps, Pierer lndustrie and BAIHBV will be stake holders in PlWHolding, with PMAG as its listed subsidiary," it added.
Subsequently, PMAG's stake in KTM AG would stand elevated to 98.2 per cent.
Bajaj Auto mentioned its Board of Directors accorded its in-principle approval to this proposal.
"BAIHBV's Board at its meeting on 26th July, considered the proposal and also noted its shareholders' in-principle approval," the submitting mentioned.
It additional mentioned, "Parties will now process necessary clearances from competition, take over and other authorities as may be required and depending on the outcome of clearances from the authorities concerned and of transaction negotiations/valuations, undertake next steps."
In a separate assertion, PIERER Mobility AG mentioned it would go forward with preparations underneath the capital market legislation.
"Depending on the outcome of the valuation process, the opinion of the Austrian Takeover Commission and the transaction negotiations as well as the clearance by the competition authorities, PIERER Mobility AG will carry out a capital increase through contribution in kind from the existing authorized capital of the company under exclusion of subscription rights by up to 50 per cent of the existing share capital," it added.
After completion of the transaction, the shareholding of PIERER Mobility AG in the working KTM AG will improve from presently about 51.7 per cent to about 98.2 per cent, it added.
The Pierer Group will proceed to keep sole management over PIERER Mobility AG, the assertion mentioned.
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