Bajaj Auto Announces Acquisition of 24,000 Shares in Pierer Bajaj AG for €24.32 Million

Bajaj Auto has announced a strategic move to acquire 24,000 shares of Pierer Bajaj AG (PBAG) through its subsidiary. This acquisition, valued at 24.32 million Euros or approximately Rs 248 crore, is part of Bajaj Auto International Holdings BV's (BAIH) plan to gain full control over PBAG.

Currently, BAIH holds a 49.9% stake in PBAG, with the remaining shares owned by Pierer Industrie AG (PIAG). The acquisition of these shares is contingent upon receiving necessary regulatory approvals. Once completed, BAIH will own 100% of PBAG, making it a wholly-owned subsidiary.

Acquisition Details and Strategic Implications

The acquisition involves purchasing all 50,100 shares held by PIAG in PBAG. This move will enable BAIH to have complete ownership of PBAG. Consequently, PBAG will become a step-down subsidiary of Bajaj Auto, enhancing its influence over Pierer Mobility AG (PMAG), the parent company of KTM AG.

Bajaj Auto stated in a regulatory filing that BAIH has issued a Notice of Call Exercise to PIAG for the purchase of 24,000 shares in PBAG. The cash consideration for this transaction is set at Euro 24.31 million. This step is crucial for Bajaj Auto's broader strategy to strengthen its position in the global automotive market.

Future Prospects and Regulatory Approvals

In May, Bajaj Auto revealed its intention to take over management control of PBAG and subsequently PMAG and KTM through BAIH BV. This acquisition aligns with Bajaj Auto's long-term goals to expand its footprint and influence in the international market.

The completion of this acquisition is subject to obtaining the necessary regulatory approvals. Once these are secured, Bajaj Auto will have full management control over PBAG and its subsidiaries, marking a significant milestone in its growth strategy.

This strategic move underscores Bajaj Auto's commitment to expanding its global presence and strengthening its partnerships within the automotive industry. By acquiring full control over PBAG, Bajaj Auto aims to leverage synergies and enhance its competitive edge in the market.

With inputs from PTI