The Yamaha Corporation announced today that it will be selling 8 million shares of its holdings in Yamaha Motor Co., a movement of shares that will see roughly 2.3% of the voting power in the powersports company changing hands. This deal is expected to close on December 4th, and the Yamaha Corporation says that it will be selling its position to various unnamed securities companies, presumably to then be sold on the open market. At the current market price for Yamaha Motor stock, this deal should be worth close to ¥26 billion, and ¥18 billion after tax expenses have been factored. The news means that while the Yamaha Corporation will remain the single largest shareholder in Yamaha Motor Co., its ownership position as a shareholder will drop from 12.22% to 9.93%, as a result of the divestiture.
We have been here before, with financial news outlets discussing the possibility of Volkswagen divesting Ducati Motor Holding from its collection of companies. Let’s be clear, this talk about talk…not talk about action. The idea of VW selling Ducati isn’t new. We first reported on this rumor back in September 2015 – when VW was found fudging around with its diesel-powered cars. Many thought the ramifications of Dieselgate would mean a bevy of brands being unload by the German car company. Nothing came of that. Then last year, around June 2016, more talk of Ducati’s divestiture came to the forefront. So here we are today, again with reports that the highest levels of Volkswagen are considering looking into selling their little motorcycle brand.
News out of Austria says that KTM is gearing up to pull its shares off the public stock market. The move comes from a request by Cross Industries, which is run by Stefan Pierer and is the largest shareholder of KTM’s stock, with 51.4% of the shares.
With Indian motorcycle manufacturer Bajaj owning another 48%, this means the announcement only affects roughly 0.6% of KTM’s overall stock, which is floating around on the Third Market (Dritter Markt) of the Vienna Stock Exchange.
According to KTM’s press release on the issue, Cross will offer €122.50 per share for the outstanding stock, which will then make KTM officially a privately held company.
As such, Energica’s IPO will take place January 29th, with over 1.65 million shares being offered at €3.20 a piece, this makes Energica’s IPO worth potentially €5.3 million.
With this money, Energica hopes to become the worldwide market leader of electric motorcycles within three years.
That will be at tall order, for the Italian company, as America’s Zero Motorcycles already boasts a much larger dealer network, and proven track record of sales.
If you’ve ever wanted to own part of a boutique motorcycle brand, this might be your chance, as Confederate Motors is looking to raise $1 million via a private stock offering. In total, 5 million shares of Confederate stock will be made available for purchase, which means each unit of stock will be priced at $0.20 a pop.
Before you start emptying out your wallet though, the offering is made under Rule 506 of Regulation D, which means there are several restrictions on the purchase, including the fact that you will have to be an accredited investor – i.e. a financial institution or a person of wealth.
Hero MotoCorp Ltd (HMCL) has filed paperwork with the Bombay Stock Exchange stating that its wholly-owned subsidiary, HMCL Americas, has entered into a settlement agreement with Erik Buell Racing, which sees the American arm of the Indian brand acquire “certain consulting project” from EBR for $2.8 million. The filing with the Bombay Stock Exchange reads: “”As part of the settlement agreement, HMCL Americas Inc has agreed to acquire the ownership of certain tangible and intangible assets of EBR Entities, free and clear of all encumbrances, for a consideration of USD 2.8 million.” The move is not surprising, since the projects and research in question are unfinished consulting work Erik Buell Racing was doing for Hero MotoCorp as a client.
China National Chemical Corp (ChemChina) is set to buy into tire-maker Pirelli, with what is currently a €7.1 billion deal. The move would put the 143-year-old Italian company in Chinese ownership, with ChemChina being the majority and controlling shareholder. ChemChina had planned to offer €15/share to existing Pirelli stock owners, but that number may have to be lifted after a recent rally in the stock’s price. Once the deal concludes though, it is expected that ChemChina will take Pirelli private once the buyout is complete. The impetus for the buyout is that Pirelli’s knowledge making tires would be a huge asset to ChemChina’s current tire production, not to mention that Pirelli’s free production inventory could be used to make other ChemChina products.
Rumors have been hot and heavy that MV Agusta will announce at EICMA that Mercedes-Benz will become a minority shareholder in the Italian motorcycle company. Those talks of investment have been confirmed by our friends at Canada Moto Guide, however in talking to Giovanni Castiglioni, the young Italian said the deal hasn’t been completed yet.
Getting a chance to bend the ear of Castiglioni at the Dragster RR/Brutale 800 RR launch this weekend, CMG’s Costa Mouzouris was told by Castiglioni that “if it happens, I would be the manager of the year; you can imagine it is a big deal for a small company, family owned, to sell a minority share to a huge company like Mercedes.”
News of Mercedes-AMG eyeing an acquisition of MV Agusta have been circulating for some time now, likely as the deal has continued to evolve between the two parties. Now, Italy’s reliable Motociclismo is reporting that AMG has agreed to purchase a minority position, likely around 20% of the company, the announcement of which will be made at the EICMA show in Milan, Italy. The deal shouldn’t see too much involvement from Mercedes-AMG in the affairs of MV Agusta, however the stock purchase will certainly put some much need capital in the Italian motorcycle company’s coffers.
Fresh off the European newswires, reports out of Italy are tipping motorcycle manufacturer MV Agusta as looking to offer up to 30% of the company on the stock market. If true, the move would make good on MV Agusta’s hope of going public by 2016 — noticeably quite ahead of schedule. Additionally, reports out of Germany are also indicating that Daimler AG (owner of Mercedes-Benz), is looking for a minority stake in MV Agusta, and approached the Italian company these past few weeks about that possibility — a move not to dissimilar to the one that saw Audi AG acquire Ducati Motor Holding.
At the time this article will be posted, it will make the sixth article relating to Harley-Davdison’s Project Livewire that is on the Asphalt & Rubber homepage. The Motor Company’s first foray into electric motorcycles made its way into not only every motorcycle publication around the world, but it also hit mainstream media like wildfire. A topic more heavily saturated at this point than Kentucky Fried Chicken, and yet everyone of the publications carrying the story, including A&R, overlooked one critical thing about Project Livewire’s launch. The attached graphic is the five-day stock price of Harley-Davidson (NYSE:HOG), and that large spike is the Livewire’s unveiling time.