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Bajaj Auto to acquire stake in Pierer Bajaj AG
Nov-07-2025

Bajaj Auto is planning to acquire 24,000 shares of Pierer Bajaj AG (PBAG) for a consideration of 24.32 million euros (around Rs 248 crore at an assumed exchange rate of 1 Euro = Rs 102.14). The shares will be acquired through the company’s wholly owned subsidiary -- Bajaj Auto International Holdings BV (BAIH), which holds a 49.9% stake in PBAG. BAIH has issued a Notice of Call Exercise (call option 2) to Pierer Industrie AG (PIAG) in respect of 24,000 shares of PBAG. PBAG holds a 74.94% stake in Pierer Mobility (PMAG) which is the holding company of KTM, the leading manufacturer of sports motorcycles in Europe. Pursuant to the exercise of call option 1, call option 2 and acquisition of 0.1% stake in PBAG, BAIH shall hold 100% of the total shareholding of PBAG. Subsequently, PBAG will become a wholly owned subsidiary of BAIH and in turn a step-down subsidiary of the company. The acquisition of a controlling stake in PBAG and therefore, in PMAG / KTM is a critical step in realigning governance to restore confidence among stakeholders, setting a path for operational restructuring of the business and creating flexibility for potential partnerships.

Earlier, in May 2025, the BAIH had entered into Call Option Agreement with PIAG and Pierer Konzerngesellschaft mbH (PIKO) for right to purchase from PIAG the 50,000 shares held in PBAG, with an intent to acquire the sole controlling stake in PBAG. The purchase price payable for each exercise of call option shall be 1,013 euros per share of PBAG. Further in June 2025, BAIH has issued a Notice of Call Exercise (call option 1) to PIAG in respect of 26,000 shares of PBAG for cash consideration of 26.34 million euros (equivalent to Rs 257 crore at an assumed exchange rate of 1 Euro = Rs 97.60).  

Bajaj Auto is an Indian company which manufactures motorcycles, three-wheelers and quadricycles.

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