Auto’s clout in the global motorcycle market, both in the conventional IC
engine space as well as the electric two wheeler space, will increase
considerably once the proposed simplified equity structure in the Pierer
Mobility company comes into effect.
Bajaj, Managing Director of India’s leading two-wheeler company Bajaj Auto and Stefan
Pierer, Chairman of the Executive Board, Pierer Mobility AG have come together
to simplify their respective shareholdings in Pierer Mobility AG, Europe's
leading manufacturer of powered two-wheeler vehicles.
Bajaj Auto International Holdings BV (BAIHBV), a 100 per cent subsidiary of Bajaj
Auto based in Netherlands and Pierer Mobility AG (PMAG) have an equity stake in
Austria based motorcycle maker KTM AG. As of now, Pierer (PMAG) and Bajaj (BAIHBV)
approximately hold 51. 7% and 48% in KTM AG respectively,
all this will change with Bajaj Auto getting a bigger role in the overall
Pierer Mobility Group, post the proposed equity change. To understand the new proposed equity
structure change, one has to go back to the overall interests of the Pierer Mobility
AG businesses. In KTM AG the Pierer and Bajaj companies have a substantial
shareholding as mentioned above. In turn, KTM AG owns 100 per cent in brands
like KTM, Husqvarna, GasGas and WP Suspension.
Pierer Mobility AG also has a 100 per cent equity stake in Pierer E-Bikes GmbH
which in turn has a 100 per cent control over electric bike brands like
Husqvarna e-bicycles, R Raymon (German Performance bikes), GasGas, Pexco and
bike&wheels. That is not all. Pierer Mobility AG also has business
interests in companies relating to Design, Concept Development &
Digitalisation. Here it has a 50pc equity stake in kiska., 74pc stake in KTM
ETechnologies, 100pc stake in KTM Innovation,100pc stake in Avocodo and 45 per
cent equity stake in DC.Digital.
The new proposed equity structure
Mobility AG is listed on the Zurich and Frankfurt stock exchanges. In this
company, PTW Holding AG (PTW Holding), which in turn is a 100% subsidiary of
Pierer lndustrie (a Pierer Company) holds 60% equity stake. In the 2020
financial year, the Pierer Group, Austria held a stake amounting to around 65.5
per cent of the company's share capital. The free float was around 33.6 per
cent while the proportion of the treasury shares was around 0.9 per cent. Thus
apart from the 60pc equity held by PTW Holding in PMAG, around 5.29 % in PMAG
is held through other group entities of the Pierer Group.
Now, coming to the
proposal at hand, it envisages two steps: One, the Bajaj Auto
Netherlands subsidiary BAIHBV will swap 46.5%
(out of its 48%) stake in KTMAG, for a stake in PTW Holding, thus becoming an
equity holder along with Pierer lndustrie in PTW Holding. Two, PTW Holding will
contribute its 46.5% stake in KTM AG to PMAG, for fresh shares to be issued by
PMAG in lieu.
After completion of both steps, Pierer
lndustrie and BAIHBV will be stake holders in PTW Holding, with PMAG as its
listed subsidiary. PMAG's stake in KTMAG would stand increased to 98.2% and it
would continue to hold the other entities mentioned above. In short, Bajaj Auto
will now be part of the bigger business of the Pierer Group which would include
electric two wheelers too.
Auto's Board of Directors accorded its in-principle approval to this proposal
and directed that this approval (as approval of BAIHBV shareholders), be
conveyed to its wholly owned subsidiary, BAIHBV.
Board at its meeting on 26th July, 2021 considered the proposals and also noted
its shareholders' in-principle approval. After due deliberations, BAIHBV's
Board also accorded its in-principle approval for the proposals.
Electric two wheelers is the future
this year, both Pierer Mobility and Bajaj had announced that they are strengthening
their strategic cooperation in the development of electric products in the
two-wheeler sector to meet the growing demand for innovative e-mobility
two companies decided to jointly explore the zero tailpipe emissions, low
maintenance, and long-lasting benefits of light electric vehicles in urban
settings and dense metropolitan areas. This renewed strategy will centre on the
development of common electric platforms to deliver the advantage of scale,
regarding all critical components, allowing both companies to quickly and
effectively adapt to evolving customer needs globally. Part of this remit involves
an open approach to all battery opportunities, aiding the parallel advantage of
both fixed and swappable solutions. Moving at pace, the initial output from
this manufacturing impetus will see the first of these shared platform vehicles
beginning of 2022.
Record year for Pierer Mobility AG in 2020 & 2021
January 2021, Pierer Mobility AG had announced that it sold 326,471 motorcycles
& e-bicycles in 2020 and earned revenues of EUR 1,530 million (Rs 13,391.30
Europe, sales to dealers were around 100,000 motorcycles and 56,064 e-bicycles.
Around two-thirds of the motorcycles were sold to the dealer network in markets
outside Europe, especially in North America, India and Australia.
sales increase has continued into 2021 for the company. In the first half of
the 2021, Pierer Mobility AG sold worldwide a total of 176,045 motorcycles of
the KTM, Husqvarna and GASGAS brands (previous year: 90,331), almost doubling
sales compared to the first half of 2020 (+95%).
a total of 53,378 units were sold through the very successfully established
non-e-bike and e-bike division (+25%). 39,603 of these are e-bikes and 13,775
are non-e-bikes of the R Raymon, Husqvarna and GasGas brands.
Europe, in this period of time, 73,224 motorcycles were sold (+76% over the
same period of the previous year). Growth was particularly strong in North
America, where 30,419 motorcycles sold, this corresponds to an increase of 160%
compared to the first half of 2020. A similar trend was seen in Australia/New
Zealand, with a 25% increase and a total of 7,842 units sold.
India, despite the ongoing difficult conditions related to the COVID-19
pandemic, sales increased by 52% to 30,561 motorcycles (previous year: 20,160).