Pierer Mobility AG and Indian manufacturing giant Bajaj have worked out a complicated corporate deal that now sees Bajaj with a large minority stake in not just KTM, but also Husqvarna and GasGas.

Who’s Pierer Mobility AG (PMAG)?

PMAG is the company that’s behind KTM, Husqvarna and GasGas (as well as WP Suspension, Pankl, and other companies that produce components for motorcycles). Based in Austria, Stefan Pierer is chairman of the executive board and CEO. Before this latest deal with Bajaj, Pierer Mobility AG owned a majority stake in KTM (just over 50 percent), and 100 percent of Husqvarna and GasGas.

Who’s Bajaj?

Bajaj Group is an Indian industrial powerhouse, involved with everything from motorcycles/scooters/rickshaws to power tools to raw materials like cotton and steel. Bajaj also has subsidiaries involved in investments, travel agencies, even insurance. Bajaj has had a partnership with KTM for several years, and builds its made-in-India models. Before this deal, Bajaj owned just under 50 percent of KTM, but did not own any portion of Husqvarna or GasGas.

What was the deal?

According to India’s moto-press, the deal came in two parts. First, Bajaj transferred almost half of its KTM shares to another company—PTW Holding AG, which held a 60 percent interest in PMAG. In return, Bajaj got a 49.5 percent interest in PTW Holding AG.

Confused? There’s more! Bajaj’s stock transfer was seen as a buy-in to a capital increase. The PTW Holding shares went back to PMAG, and PMAG issued new shares, owned by Bajaj indirectly now.

What does it mean?

None of the coverage I’ve seen is particularly clear on how much of KTM/Husqvarna/GasGas is actually owned by Bajaj at this point, particularly as regulators are still fine-tuning the details. However, at this point, the Austrians are reportedly still in charge, not the Indians; a press release says “The Pierer Group will continue to maintain sole control over PIERER Mobility AG.” Unless, of course, Bajaj owns the Pierer Group now, too. These days, it’s getting pretty hard to stay on track, figuring out who owns what.

Practically speaking, this probably means little to consumers, at least in the short run, but it probably greatly simplifies things internally, making it easier for KTM, Husqvarna and GasGas to work together corporately with Bajaj’s production lines.

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