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Taiwan’s KYMCO making moves in deal with Harley-Davidson’s LiveWire

LiveWire will be first publicly traded electric motorcycle company in the US

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Harley-Davidson LiveWire One. (Taiwan News photo)

Harley-Davidson LiveWire One. (Taiwan News photo)

TAIPEI (Taiwan News) — Taiwan motorbike manufacturer KYMCO made waves this week after announcing a deal with Harley-Davidson’s electric motorbike arm LiveWire.

Harley-Davidson announced on Dec. 13 it plans to take LiveWire public on the New York Stock Exchange through a deal with special purpose acquisition company (SPAC) AEA-Bridges Impact Corp (ABIC) and KYMCO.

The transaction will be financed by ABIC’s US$400 million (NT$11.14 billion) in cash, held in trust, a US$100 million investment from KYMCO, and a US$100 million investment from Harley-Davidson, through a private investment in public equity (PIPE).

The combined company is expected to have an enterprise value of around US$1.77 billion and post-money equity value of about US$2.31 billion at closing. The deal will make LiveWire the first publicly traded electric motorcycle company in the U.S.

“LiveWire’s mission is to be the most desirable electric motorcycle brand in the world,” said Jochen Zeitz, president, CEO, and chairman of Harley-Davidson, in a pre-recorded video at a Taipei press conference on Thursday (Dec. 16.). LiveWire will be able to operate independently while benefiting from the at-scale manufacturing and distribution capabilities of its strategic partners KYMCO and Harley-Davidson, Zeitz added.
Taiwan’s KYMCO making moves in deal with Harley-Davidson’s LiveWire
KYMCO Chairman Allen Ko speaking at Dec. 16 press conference. (Taiwan News photo)

“In KYMCO, we’ve found a great top-tier partner with substantial experience and great electric ambitions. We’re excited that this partnership will provide LiveWire with access to KYMCO’s digital and tech capabilities, powertrain, and vehicle manufacturing, global supply chain, in addition to its strong existing presence in key Asian markets,” Zeitz said.

“Importantly, KYMCO brings specific expertise in scooters, light motorcycles, and side by sides, in addition to state of the art supply chain and manufacturing capabilities. We’re confident that KYMCO provides many future growth opportunities for LiveWire, and we’re excited to start this journey together,” the Harley CEO said.

KYMCO Chairman Allen Ko (柯勝峯) described the deal as a mutually beneficial partnership at the press conference. He said KYMCO was first approached by Harley-Davidson about the deal, and that it took about eight months to work out the details.

Ko said the partnership will improve KYMCO’s image and increase its exposure. Once the deal is finally complete, Harley-Davidson will retain a 74% equity interest in LiveWire, while ABIC shareholders will own around 17%, and ABIC’s founders and KYMCO will own approximately 4% each.
Taiwan’s KYMCO making moves in deal with Harley-Davidson’s LiveWire
KYMCO heavy electric motorcycle. (Taiwan News photo)


Updated : 2022-05-25 19:09 GMT+08:00