Bajaj Auto unit to acquire 24,000 shares in Pierer Bajaj AG for Euro 24.32 million

Bajaj Auto on Thursday said it has applied through its wholly owned subsidiary to acquire 24,000 shares of Pierer Bajaj AG for 24.32 million euros (about Rs 248 crore).Bajaj Auto International Holdings BV (BAIH) intends to acquire all 50,100 shares of Pierer Industrie AG (PIAG) in Pierer Bajaj AG (PBAG).

PBAG has a nearly 75 percent stake in its subsidiary Pierer Mobility AG (PMAG), the holding company of KTM AG.

“We hereby inform that BAIH has issued a subsequent call exercise notice to PIAG in respect of 24,000 equity shares of PBAG for a cash consideration of Euro 24.31 million, subject to obtaining requisite regulatory approvals,” Bajaj Auto said in a regulatory filing.

Currently, BAIH holds a 49.9 percent stake in PBAG and the remaining stake is held by PIAG, it added.

In addition, upon completion upon receipt of requisite regulatory approvals, BAIH will hold 100 percent of the total shareholding of PBAG from a 0.1 percent acquisition under a separate SPA, the report said. “Accordingly, PBAG will become the wholly owned subsidiary of BAIH and in turn a retiring subsidiary of Bajaj Auto,” it added.

In May this year, Bajaj said it plans to acquire management control of PBAG, and thereby PMAG and KTM, through its wholly owned subsidiary – BAIH BV.