Stock Groups

Harley Surges on Plans to Merge Electric Motorcycle Unit With SPAC -Breaking

by Mike Robinson

[ad_1]

© Reuters.

By Dhirendra Tripathi

Investing.com – Harley-Davidson stock (NYSE:) soared over 12% in Monday’s premarket as the company said it will merge LiveWire, its electric motorcycle-making unit, with AEA-Bridges Impact Corp (NYSE:), a special purpose acquisition company.

LiveWire’s enterprise value is now $1.77 billion. It comes at an era when startups around the globe are challenging established companies that depend on fossil fuel-powered vehicles.

Harley expects the deal’s $545 million proceeds to accelerate the rollout of LiveWire’s products and enhance its global manufacturing and distribution capabilities.

Through a PIPE, ABIC will finance the transaction with $400 million of cash in trust.

Harley will keep a 74% stake in the merged entity. ABIC shareholders will hold nearly 17% and ABIC founders will each have 4%.  

It is anticipated that the transaction will close before June end.

Harley has attempted positioning LiveWire, an all-electric motorcycle manufacturer with an emphasis on the urban market.

 

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]