H-D to go public with their LiveWire electric motorcycle brand

Motorcycle.com has just published an article regarding H-D going public with their LiveWire electric motorcycle company. Here is their financing plan, which frankly I don't really understand:

ABIC will put in $400 million (held in trust, pending no redemptions from its shareholders), with Harley-Davidson and Kymco each investing $100 million. Harley-Davidson will retain a 74% equity interest in LiveWire. ABIC’s shareholders will hold 17.3% equity, with Kymco holding about 4.3%. ABIC’s founders John Garcia and Michele Giddens will also hold about 4.3% between them. Jochen Zeitz, Harley-Davidson’s chairman and chief executive officer, will hold the same positions with LiveWire for up to two years following the transaction, with Ryan Morrissey serving as the company’s president.

And here is a link to the long article regarding this story should you want to try to know more regarding this business and financing plan. To me it sounds like a huge amount of spin. Enough to make the LiveWire take off like a helicopter.

https://www.motorcycle.com/features/harl...powertrain.html

Zitat von Richard230 im Beitrag #1

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Motorcycle.com has just published an article regarding H-D going public with their LiveWire electric motorcycle company. Here is their financing plan, which frankly I don't really understand:

ABIC will put in $400 million (held in trust, pending no redemptions from its shareholders), with Harley-Davidson and Kymco each investing $100 million. Harley-Davidson will retain a 74% equity interest in LiveWire. ABIC’s shareholders will hold 17.3% equity, with Kymco holding about 4.3%. ABIC’s founders John Garcia and Michele Giddens will also hold about 4.3% between them. Jochen Zeitz, Harley-Davidson’s chairman and chief executive officer, will hold the same positions with LiveWire for up to two years following the transaction, with Ryan Morrissey serving as the company’s president.

And here is a link to the long article regarding this story should you want to try to know more regarding this business and financing plan. To me it sounds like a huge amount of spin. Enough to make the LiveWire take off like a helicopter.

https://www.motorcycle.com/features/harl...powertrain.html

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Zitat von Mr. 36654 im Beitrag #2

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Zitat von Richard230 im Beitrag #1

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Motorcycle.com has just published an article regarding H-D going public with their LiveWire electric motorcycle company. Here is their financing plan, which frankly I don't really understand:

ABIC will put in $400 million (held in trust, pending no redemptions from its shareholders), with Harley-Davidson and Kymco each investing $100 million. Harley-Davidson will retain a 74% equity interest in LiveWire. ABIC’s shareholders will hold 17.3% equity, with Kymco holding about 4.3%. ABIC’s founders John Garcia and Michele Giddens will also hold about 4.3% between them. Jochen Zeitz, Harley-Davidson’s chairman and chief executive officer, will hold the same positions with LiveWire for up to two years following the transaction, with Ryan Morrissey serving as the company’s president.

And here is a link to the long article regarding this story should you want to try to know more regarding this business and financing plan. To me it sounds like a huge amount of spin. Enough to make the LiveWire take off like a helicopter.

https://www.motorcycle.com/features/harl...powertrain.html

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They're jumping into the stock market to capture the current hype in EV's. Some of these EV companies have nothing more than a business plan, but are worth more than GM.........

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Harley will retain 74% and the presidency for two years. It's all about getting a lot of investment money on the EV wave....smart business move for Harley IMO...not so sure about the investors!

Zitat von Vtbob im Beitrag #4

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Harley will retain 74% and the presidency for two years. It's all about getting a lot of investment money on the EV wave....smart business move for Harley IMO...not so sure about the investors!

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Zitat von wessie im Beitrag #5

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Zitat von Vtbob im Beitrag #4

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Harley will retain 74% and the presidency for two years. It's all about getting a lot of investment money on the EV wave....smart business move for Harley IMO...not so sure about the investors!

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Exactly, it will move the financial risk to the investors whilst HD retains control.

I hope the decision makers for my employer's pension fund steer clear based on HD's past performance.

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Zitat von Richard230 im Beitrag #6

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Zitat von Vtbob im Beitrag #4

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Harley will retain 74% and the presidency for two years. It's all about getting a lot of investment money on the EV wave....smart business move for Harley IMO...not so sure about the investors!

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That was my thought, also. However those investors seem to be companies that should know what they are doing. But it would suck if the general public was offered shares of that deal and ended up buying stock in the LiveWire business. I imagine that is why they didn't do an IPO on the stock exchange. As an investor I wouldn't touch that deal with the proverbial 10-foot pole.

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I heard on the car radio that core Harley stock is up 14% today due to this deal riding the wave!!!

Zitat von Mr. 36654 im Beitrag #8

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Zitat von Richard230 im Beitrag #6

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Zitat von Vtbob im Beitrag #4

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Harley will retain 74% and the presidency for two years. It's all about getting a lot of investment money on the EV wave....smart business move for Harley IMO...not so sure about the investors!

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That was my thought, also. However those investors seem to be companies that should know what they are doing. But it would suck if the general public was offered shares of that deal and ended up buying stock in the LiveWire business. I imagine that is why they didn't do an IPO on the stock exchange. As an investor I wouldn't touch that deal with the proverbial 10-foot pole.

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I think they are offering this an opportunity for the public to buy stock. So, it's pretty much an IPO

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Zitat von wessie im Beitrag #11

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https://eu.jsonline.com/story/money/2021/12/13/harleys-livewire-become-publicly-traded-company/6492200001/

"AEA-Bridges Impact Corp. is a special purpose acquisition firm formed by private equity firm AEA Investors and Bridges Fund Management. Special purpose acquisition companies, or SPACs, are used as a shortcut to go public, bypassing the lengthy and costly process of a traditional initial public offering."

https://www.investopedia.com/terms/s/spac.asp
"An investor in a SPAC IPO is making a leap of faith" is I believe a polite way of saying, "dodgy as fuck."

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Here is another article regarding this deal and the hoped-for LiveWire company's future. If you ask me, these guys are dreaming:
https://www.revzilla.com/common-tread/li...d-in-five-years