Harley-Davidson to spin off electric motorcycle division

Motorcycle maker Harley-Davidson is spinning off its electric bikes division and listing it on the stock market through a merger with a blank cheque company, taking a similar route as other electric vehicle groups that have gone public. Harley’s electric motorcycle unit, LiveWire, is set to merge with AEA Bridges Impact Corp, a special purpose acquisition company run by executives of private equity firm AEA Investors and investment group Bridges Fund Management. The deal will give LiveWire an enterprise value of $1.8bn. LiveWire’s listing will make it the latest electric vehicle company to go public via a Spac deal this year, as investors have clamoured to fund companies promising to revolutionise the future of transport. However, as interest in the Spac market has plunged from frenzied highs at the start of the year, so too have shares in electric vehicle companies, several of which have little to no revenue. Jochen Zeitz, chief executive, told the Financial Times that Harley’s long record as a manufacturer set it apart from nascent electric vehicle companies. “This is not the founder-led start-up that has no history,” Zeitz said. “This is a [more than 100]-year-old company with a solid management team that is spinning off a business that we believe in.” Several high-profile electric vehicle companies that have listed via Spacs have also faced scrutiny from regulators. Last week, the US Securities and Exchange Commission subpoenaed electric car company Lucid Motors, requesting documents related to its projections and disclosures. Lordstown Motors is under investigation by federal prosecutors, while Nikola was found to have faked a prototype of its electric truck. “When it comes to product testing or the infrastructure manufacturing supply chain, all of that is daily business for us and has been for over 100 years, and I think that is a big differentiator from those companies that haven’t done this before,” Zeitz said, referring to newer electric vehicle makers. The move to separate Harley’s electric vehicle business marks a change in strategy for the motorcycle maker, which has kept the LiveWire brand in-house for a decade. Harley had planned to invest $190m to $250m a year to develop and produce electric motorcycles.