Harley-Davidson has announced a new plan to float 26% ownership of LiveWire to raise an estimated $545m capital for the ongoing development of its electric vehicle products.
HD plans on selling 26% in total shares of the LiveWire brand, with 17% going to investors and 4% to founders of a Special Purpose Acquisition Company (SPAC) called AEA Investors and Bridges Fund Management (ABIC); another 4% will be owned by Taiwanese motorcycle and scooter maker KYMCO, leaving 74% of the company to HD.
Harley Chairman, CEO and President Jochen Zeitz is describing this as “the first publicly traded EV motorcycle company in the US. The transaction will be financed by $400m cash pre-raised and held in trust by ABIC, a $100m investment from Harley-Davidson, and a $100m investment from KYMCO
“The net cash proceeds will be used to fund LiveWire’s strategic plan to accelerate its go-to-market strategy, invest in new product development and enhance its global manufacturing and distribution capabilities.”
The deal is expected to close in the first half of 2022, and will also include the STACYC, the fully electric balance bike for children.
Jochen Zeitz stated, “LiveWire’s mission is to be the most desirable electric motorcycle brand in the world, leading the electrification of the sport.
“This transaction will give LiveWire the freedom to fund new product development and accelerate its go-to-market model. LiveWire will be able to operate as an agile and innovative public company while benefitting from the at-scale manufacturing and distribution capabilities of its strategic partners, Harley-Davidson and KYMCO.”
Visit www.LiveWire.com to learn more about the LiveWire.