Harley Just Spun Off LiveWire, but It's on the Cusp of Owning It Again
Electric motorcycles were supposed to supercharge Harley-Davidson's (NYSE: HOG) future, but slack sales short-circuited the growth hype and the business was spun off in September into the stand-alone LiveWire Group (NYSE: LVWR) via a reverse merger with a special purpose acquisition company (SPAC).
The original plan was for Harley to own just under three-quarters of the new company, but the original SPAC investors bailed on LiveWire, withdrawing hundreds of millions of dollars out of the SPAC's trust account as they preferred to take the cash instead of owning stock in the new business.
That scenario isn't necessarily unique, as SPAC investors often look to cash out immediately before a transaction is completed. However, the drain on capital forced Harley to pump more money into LiveWire, and now it owns almost the whole thing again.
Source Fool.com
