THE LEADING BUSINESS MAGAZINE FOR THE INTERNATIONAL CUSTOM MOTORCYCLE AND PARTS INDUSTRY
H-D in LiveWire SPAC Deal with Private Equity and KYMCO
Harley-Davidson is not allowing the fact that recent months have seen the investor community cool on the use of Special Purpose Acquisition Company ( SPAC ) - as a stock listing alternate to the classic IPO - to dissuade them from an audacious plan to float 26 % ownership of LiveWire to raise some $ 545m capital for the ongoing development of its electric vehicle products . Harley will be left with 74 % ownership of the newly floated LiveWire subsidiary . The investors ( 17 %) and founders ( 4 %) of a SPAC called AEA Investors and Bridges Fund Management ( ABIC ) will own a combined 21 % ( through certain noted Private Equity firm AEA Investors ' executives ) and Taiwanese motorcycle and scooter maker KYMCO owning a 4 % stake in what Harley Chairman , CEO and President Jochen Zeitz is describing 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 ( through a
PIPE - private investment in public equity ). " The combined company is expected to have an enterprise value of approximately $ 1.77bn and postmoney equity value of approximately $ 2.31bn at closing . " Jochen Zeitz will be Chairman and serve as acting CEO of LiveWire for up
to two years following completion of the transaction ; Ryan Morrissey will serve as President of LiveWire . LiveWire ' s Board of Directors will include independent directors in addition to representation from Harley-Davidson and ABIC . " 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 .
" As the majority shareholder in LiveWire following the transaction , Harley-Davidson will continue to consolidate LiveWire ' s results of operations for GAAP financial reporting purposes . LiveWire will be reported as a separate segment within Harley-Davidson ' s financials with GAAP disclosures recognizing amounts attributable to the noncontrolling interests . " The transaction , which has been approved by the boards of directors of both Harley-Davidson and ABIC , is expected to close in the first half of 2022 , and is subject to the approval of ABIC shareholders and other customary closing conditions ." LiveWire will also include STACYC , the all-electric balance bikes for kids . The common stock is expected to be listed on the New York Stock Exchange under the symbol " LVW ". J . P . Morgan Securities LLC is serving as financial advisor to Harley-Davidson . Jochen Zeitz is quoted as saying that this announcement " is a historic milestone with LiveWire set to become the first publicly traded EV motorcycle
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ISSUE # 270
' CERIANI ' FORKS
BAGGER RACING LEAGUE 2021
This custom BMW R 18 by Shinya Kimura ( of Zero Engineering / Samurai Chopper fame ) is the latest in BMW ' s ' SoulFuel ' series of platform interpretations ... see pages 31-33 .