Mumbai: Bajaj Auto Ltd, country’s second largest two-wheeler maker by sales, has increased its stake in European bike maker KTM Power Sports AG, said the company in a statement.
Bajaj bought 244,600 shares through its 100% subsidiary, Bajaj Auto International Holdings BV Netherlands (BAIHBV) on 3 November 2010. The company did not disclose the amount it spent to acquire the additional stake.
This purchase takes the total shareholding of BAIHBV in KTMPS to 38.09% from 35.67%. Both firms are already jointly developing products for Indian and European markets.
Bajaj, which picked up a 14.9% stake in KTM for around Rs300 crore in 2007, has been steadily upping its equity in the company. In 2008, it increased stake in the company to 25%. Subsequently, it raised its holding to 31.92%, hiking it further 35.67% by participating in a 42.99 million euro equity issue by the European bike maker in April this year.
Giving details on the progress of joint development activities, Bajaj Auto said: The first of the co-developed products, KTM Duke 125, will hit European markets in 2011. The KTM models will be launched in India during the second half of next year, it added.