KTM has secured a new investor to allow it to go ‘full throttle into its next chapter’.

Indian company Bajaj Auto have confirmed that they plan to take control of KTM AG.

They have agreed an €800m (£674m) deal to breathe life into KTM, whose year has been blighted by major money issues.

Bajaj Auto have been a minor stakeholder since 2007 but will now become the strategic lead of KTM.

A statement from KTM regarding its new investor read:

“KTM is proud to announce a major milestone: after months of dedicated effort and strategic planning, the KTM AG was able to expand its relationship with its long-standing partner Bajaj and secure them as a main investor.

"Today we have been given the opportunity to continue the history of KTM. Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made available. The existing sites - in particular our main plant in Mattighofen/Munderfing - will remain the basis for our future success. This means that we will continue to be an important employer for the entire region. In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible. I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world's best-known motorcycle brands, which has a unique community." – Gottfried Neumeister, CEO, KTM AG

“With renewed energy and unstoppable momentum, KTM is going full throttle into its next chapter.”

Bajaj Auto's statement regarding its new partnership with KTM:

A statement from Bajaj Auto read:

“In a significant move underscoring its commitment to its long-term partnership with KTM and recognising the opportunity in the exciting world of premium/sports motorcycles given the brand’s preeminent position, Bajaj Auto Limited, through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV), intends to take control of the KTM business that is headquartered in Austria, subject to necessary regulatory approvals.

“With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network.

“Simultaneously, BAIHBV has arranged a debt funding package of €800 million to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM’s debt restructuring with the approval of the competent Court in Austria and infusing funds into the company to revive its operations and working capital cycle. Of this total €800 million debt package, €200 million has already been infused into the company so far and the balance €600 million is being done now.

“This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage, positions Bajaj Auto as a driving force in shaping the future of one of world’s most admired high performance motorcycle companies.”