Harley-Davidson will own 74% of LiveWire after the deal is completed.
Josep Lago/AFP via Getty Images
Shares of Harley-Davidson raced ahead on Monday after the motorcycle manufacturer said it is taking its electric-vehicle brand, LiveWire, public through a $1.77 billion SPAC merger.
Harley-Davidson stock (ticker:HOG) was up 10.7% to $40.76 in premarket trading.
LiveWire, introduced as a stand-alone model in 2019, will merge with a sustainability-focused SPAC called AEA-Bridges Impact Corp. (IMPX). It will be the first publicly traded maker of electric motorcycles, according to a news release describing the deal.
Harley-Davidson and KYMCO, a Taiwanese motorcycle manufacturer, are the company’s strategic partners in the merger. “This transaction will give LiveWire the freedom to fund new product development and accelerate its go-to-market model,” Harley-Davidson CEO Jochen Zeitz said in the release.
The AEA-Bridges Impact Corp SPAC, or ABIC, will put in $400 million cash held in trust, Harley-Davidson is investing $100 million, and a $100 million investment comes from KYMC, through a private investment in public equity, or PIPE.
Harley-Davidson will own about 74% of LiveWire after the deal is completed. ABIC’s shareholders will own approximately 17%, and ABIC’s founders and KYMCO will own approximately 4% each.
Write to Karishma Vanjani at [email protected]
