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Harley-Davidson and Kymco in Livewire partnership

Maker of the American motorcycle Harley-Davidson (H-D) and Taiwanese scooter manufacturer Kymco will enter a strategic partnership in the Livewire electric motorcycle brand. After spinning off Livewire as a separate motorcycle brand in July, H-D is seeking listing on the New York Stock Exchange (NYSE), together with a special purpose acquisition company AEA-Bridges Impact Corp (ABIC).

H-D intends for Livewire to leverage on Kymco’s engineering expertise, manufacturing footprint, distribution, supply chain infrastructure and global logistics capabilities, according to a press release. The partnership sees a USD 100 million (RM4,211,000) investment from both H-D and Kymco and financed by ABIC USD 400 million (RM1.68 billion) cash held in trust.

H-D will retain a 74% equity, with ABIC having 17% and Kymco as well as ABIC founders having 4% each. Pending approval of ABIC shareholders, the listing is expected to have an equity value of USD 2.31 billion (RM9.73 billion) with an enterprise value of USD 1.77 billion (RM7.45 billion).

Jochen Zeitz, Chairman, President and CEO of H-D, 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 while Livewire’s board of directors will include independent directors in addition to representation from Harley-Davidson and ABIC.

The post Harley-Davidson and Kymco in Livewire partnership appeared first on Paul Tan’s Automotive News.

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