Harley-Davidson shares are up 20% on Monday: explore why

Shares of Harley-Davidson Inc (NYSE: HOG) were up nearly 20% this morning after the American motorcycle manufacturer said its EV unit is set to go public.

LiveWire to list on the NYSE in the first half of 2022

Harley-Davidson is opting for a SPAC merger with AEA-Bridges Impact Corp to list LiveWire on the New York Stock Exchange under the ticker “LVW”. The deal with the blank check company values LiveWire at roughly $1.77 billion.  

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The electric motorcycle business will have Harley-Davidson and Taiwan-based global powersports company KYMCO as its strategic partners.

Upon completion of the transaction expected in H1 of 2022, LiveWire will be the only publicly traded EV motorcycle company in the U.S. In the press release, Harley CEO Jochen Zeitz said:

LiveWire’s mission is to be the most desirable electric motorcycle brand in the world, leading the electrification of the sport. This transaction will help LiveWire operate as an agile and innovative public company while benefitting from the at-scale manufacturing and distribution capabilities of its strategic partners.

LiveWire to start with $545 million in cash

LiveWire will start its journey as a separate, publicly-listed company with $545 million in cash. It will use the money to expand its manufacturing capacity, add new products to the portfolio, and build on its go-to-market strategy.

The press release also confirmed that Harley-Davidson will keep an about 74% stake in LiveWire. The remaining 17% approximately will go to ABIC’s shareholders.

The Wisconsin-headquartered company reported strong results for its fiscal third quarter in late October that prompted it to declare a quarterly cash dividend of 15 cents per share.

Harley CEO Jochen Zeitz will continue to lead LiveWire as its acting chief executive for up to two years after completion of the transaction, which is yet to secure approval from ABIC shareholders and meet other customary closing conditions.