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Livewire Is Spun Off By Harley-Davidson In A $1.8 Billion SPAC Merger

Livewire Is Spun Off By Harley-Davidson In A $1.8 Billion SPAC Merger
The first publicly traded electric motorcycle company in the US was created when Harley-Davidson Inc. spun off its electric motorcycle division, LiveWire, through a SPAC deal.
Following the unit's $1.77 billion merger with a blank-check company on Tuesday, LiveWire Group Inc., Harley-former Davidson's electric motorcycle subsidiary, debuted on the American market. In afternoon trading, its new shares were down 1.3 per cent.
The EV unit and AEA-Bridges Impact Corp., a special purpose acquisition company (SPAC), agreed to merge last year.
Last week, AEA-Bridges shareholders approved the merger, despite the fact that investors are becoming more wary of companies with blank checks because a record number of SPACs will be liquidating in 2022 due to rising interest rates and market volatility. Originally, the acquisition was supposed to be finalized in the first half of the year.
"I think there was probably a more optimal time to do this," said Jaime Katz, a senior equity analyst at Morningstar. "Maybe there was something facilitating the actual execution that was sort of like now or never."
Company executives made a sales volume prediction of over 100,000 electric bikes by 2026 at their investors day in May. The company, like other automakers, has dealt with supply chain issues that have limited its ability to keep showroom floors stocked during the busiest riding season.
Jochen Zeitz, the CEO of Harley-Davidson, stated in an interview that the company has secured supplies for its electric bikes for the "next few years."
The LiveWire, Harley's first electric motorcycle, was introduced in 2019 before the company decided to relaunch it under its own sub-brand.
The Milwaukee-based company is attempting to become more competitive with other electric motorcycle producers in an effort to regain lost market share as its primary baby boomer customer base ages and interest in motorcycling as a recreational activity wanes.
One electric bike model from LiveWire is priced at $16,999, while another is $22,799. With a 74 per cent stake, Harley-Davidson will control the majority of LiveWire.

Christopher J. Mitchell

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