Pierer Industrie and Bajaj Auto restart discussions for Bajaj to participate at level of Pierer Mobility

Pierer Industrie AG holds more than 60% of the shares of PIERER Mobility AG. The listed company PIERER Mobility AG holds approximately 51.7% of the shares of KTM AG; Bajaj Auto International Holdings BV (referred to as Bajaj) holds approximately 48% of the shares of the operating KTM AG.

PIERER Mobility AG was informed by Pierer Industrie AG and Bajaj that they have restarted discussions on assessing the possibility of transferring Bajaj's 48% stake in the operating KTM AG to PIERER Mobility AG, with the Pierer-Group continuing to retain the controlling majority over PIERER Mobility AG.

Pierer Industrie AG and Bajaj will now evaluate the proposals in detail.

In preparation for this possible transaction, Pierer Industrie AG in a first step contributes its 60% stake in PIERER Mobility AG to "PTW Holding AG" through a contribution in kind, which will thus become a direct 60% shareholder of PIERER Mobility AG.

If a decision is taken to execute the transaction, PIERER Mobility AG will consider the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorized capital of the company. The authorized capital enables a capital increase of up to 50% of the existing share capital. After the transaction, the stake of PIERER Mobility AG in KTM AG increases from currently 51.7% to approximately 99.7%.

The proposal envisages Bajaj swapping its 48% stake in KTM AG for a stake in PMAG and both Pierer Industrie and Bajaj moving their stakes in PMAG, to a new Holdco between them.

The discussions are currently at a very preliminary stage and this disclosure is being made only by way of abundant caution. Bajaj will evaluate and decide on the proposal in due course, following due corporate processes such a deal entails.

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.3172.6 as compared to the previous close of Rs. 3129.95. The total number of shares traded during the day was 61752 in over 7660 trades.

The stock hit an intraday high of Rs. 3249.75 and intraday low of 3130. The net turnover during the day was Rs. 197800129.

Source : Equity Bulls

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