Current owner Stefan Pierer will completely exit KTM’s leadership in June
Bajaj Auto is now acquiring Pierer Industries’ entire stake in the parent company of KTM, Husqvarna, and Gas Gas, in a breakthrough blockbuster deal estimated to be worth €800 million (US$901.8 million). This is expected to get completed by May 2026 with due regulatory approval (pending at the moment).
Bajaj is an iconic Indian company which already owns 49.9% stake in Pierer Mobility, the parent company of three well-known and popular motorcycle brands — namely KTM, Husqvarna and the fairly recent Gas Gas.
Remainder 50.1% was owned by Pierer Industrie AG, but as of 22-May-2025, Pier Industrie and Bajaj have reached an incredible agreement to transfer all of these to Bajaj.
Indian economy is already in the news and India has been at center stage for multiple reasons in recent times. Its economic and infrastructure growth and rollout of policies in favour of local businesses has been rapid, relentless, reassuring and successful. Investors, manufacturers, employees, entrepreneurs, customers, importing nations, — they all seem to be benefitting.
Bajaj acquiring these major brands is a major achievement for Indian automotive sector, the possibilities with this is endless– and its especially ground breaking when Chinese companies are rapidly acquiring technology and engineering from loss making companies of Europe. This is more than just a corporate achievement. Its vindication of excellence in business and management.
The news from Pierer Group comes just as Pierer Mobility confirmed it had received a €450 million (US$507.4 million) loan, plus an additional €150 million (US $ 169.1 million) bond from Bajaj. The total sum of €600 million (US$676.5 million) will be used to pay the 30% cash quota owed to KTM’s creditors agreed to under its restructuring plan.
This is all on top of another €200 million (US$225.6 million) that Bajaj has already provided for restarting production.
Finally, Stefan Pierer will step down from the executive board of Pierer Mobility in June 2025, once the restructuring process is completed. The former Chief Executive Officer had stepped down from helm of KTM in March 2025, but he continued to own Pierer Industries and was also on the board of Pierer Mobility. Once he resigns from the board and Bajaj secures Pierer Industries’ shares, Stefan Pierer and his influence will be fully separated from the KTM, Husqvarna and Gas Gas brands.
Meanwhile, Verena Schneglberger-Grossmann has been appointed to Pierer Mobility’s executive board as Chief Legal Officer, in support of the current CEO, Gottfried Neumeister.
So the future of KTM and its sister brands remains to be determined because it can be suspected Stefan Pierer has not yet given up and may have control via a proxy CEO.
Bajaj is manufacturing the group’s sub-400cc models such as the KTM 390 Adventure and Husqvarna’s Vitpilen and Svartpilen 401, and possibly the three newly acquired brands may shift their focus on low end or entry-level, affordable segment — temporarily(??) moving away from larger, more expensive motorcycles such as the 1390 Super Duke.
KTM has a joint venture with Chinese two-wheeler major CFMOTO, which produces motorcycles in the 790 to 950cc range. KTM is the European distributor for CFMOTO’s motorcycles in Europe for quite a few years. In April, KTM announced that distribution arrangement was ending June 1. So, Bajaj may try to expand its foothold in Europe by utilizing the facilities and models of the newly acquired brands.
Either ways–the three brands have survived, which is better than what used to happen in the previous century—as seen in the case of Vincent, Excelsior-Henderson, Brough Superior—or the more famous and successful brands such as Indian, Triumph, Buell and Victory.
Whether quality, demand and service stays as-is is something Bajaj should focus on, something for them to catapult into history books of motorcycling world & industry.
–Wayfarer
Associate Editor
Bikernet.com ©
PRESS RELEASE
PIERER Mobility AG: Pierer and Bajaj enter into call option agreement that enables a future change of control
22-May-2025 / 19:43 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS Group
Ad hoc notification pursuant to Article 17 Regulation (EU) No 596/2014 (MAR)
Ad hoc announcement pursuant to Art. 53 LR
Wels, May 22, 2025
PIERER Mobility AG: Pierer and Bajaj enter into call option agreement that enables a future change of control
Pierer Bajaj AG is the majority shareholder of PIERER Mobility AG. Pierer Industrie AG holds a 50.1% stake in Pierer Bajaj AG. The remaining 49.9% is held by Bajaj Auto International Holdings B.V. (“Bajaj BV”).
Today, Pierer Industrie AG has concluded a call option agreement with Bajaj BV which enables Bajaj BV to acquire the shares of Pierer Industrie AG in Pierer Bajaj AG and thus indirect control over PIERER Mobility AG until the end of May 2026. Such a change of control requires regulatory approvals. Shares may be transferred under this call option to Bajaj BV once all regulatory approvals have been obtained.
Until these approvals are received, the current control situation will remain unchanged.
