Harley-Davidson launches electric motorcycle division

Motorcycle maker Harley-Davidson is splitting its e-bike division and listing on the stock market through a merger with an empty test company, following a similar path to electric vehicle groups. others listed on the stock market.

Harley’s electric motorcycle unit, LiveWire, is set to merge with AEA Bridges Impact Corp., a special purpose acquisition (Spac) company led by executives from private equity firm AEA Investors and managed by the investment group Bridges Fund Management. The deal gives LiveWire a $1.8 billion enterprise value.

LiveWire’s listing makes it the newest tram The company will list shares through the Spac deal this year as investors call for funding for companies that promise to revolutionize transportation in the future.

However, as interest in the Spac market has dwindled from a frenzied high at the start of the year, so has the stakes in electric vehicle companies, some of which have little or no turnover.

Jochen Zeitz, chief executive officer, told the Financial Times that Harley’s long record as a manufacturer has set itself apart from the fledgling electric vehicle companies.

“This is not a founder-led startup with no history,” says Zeitz. “This is a [more than 100] The established company with a solid management team is growing into a business we believe in,” he added.

Several well-known electric vehicle companies that listed through Spaces have since faced scrutiny from regulators.

Last week, the US Securities and Exchange Commission subpoenaed the electric car company Lucid Motors, requesting documents regarding its projections and disclosures. Lordstown Motors is under investigation by federal prosecutors, while Nikola was found to have fake a prototype of its electric trucks.

“When it comes to product testing or the infrastructure manufacturing supply chain, all of that is a day job for us and has been for over 100 years, and I think that’s a big difference from companies that have never done this before.” Zeitz said, referring to newer electric vehicle manufacturers.

Harley’s move to spin off the electric vehicle business is a shift in strategy for the motorcycle maker, which has kept the LiveWire brand for a decade. Harley has planned to invest between $190 million and $250 million per year in the development and production of electric motorcycles.

The deal will be funded through $400 million raised by AEA Bridges Spac in September 2020, a $100 million investment from Harley, and $100 million in funding from Taiwanese motorcycle maker Kymco .

Harley will own 74% of LiveWire, with 12% held by Spac shareholders and the remainder held by Spac and Kymco founders.

Zeitz said that while new funding from the offering was welcome, it was not the driving force behind the deal.

“We have a lot of capital, so capital is not an issue [for splitting off LiveWire], “I said.

Shares of AEA Bridges Impact Spac were up 2.5% on Monday. The combined company will trade on the New York Stock Exchange under the ticker ‘LVW’.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button