Eicher Motors on Thursday announced a strategic investment in Spain’s Stark Future SL to develop electric motorcycles and for technology sharing, technical licensing, and manufacturing.
The company’s Board of Directors has approved an investment of Euro 50 million for a close to 10.35 per cent equity stake in Stark Future. With this investment, Eicher Motors Ltd., will have a seat on Stark Future’s Board and will explore further opportunities to collaborate in the space of electric mobility, said the company.
“The Board of Directors of EML has approved an investment of € 50 million in Stark Future, wherein EML shall enter into an Investment Agreement, Shareholders Agreement and a technical collaboration agreement (“Transaction Documents”) in the space of electric motorcycles with Stark Future,” said Eicher Motors in its regulatory filing
“Cash Consideration of € 50 million (Fifty Million Euros) to be invested in one or more tranches in Stark Future S.L,” it added.
However, the cost of acquisition is pegged at Euro 903 per share, including the share premium, the regulatory filing noted. The deal is expected to close in the first quarter of 2023.
“We love the vision, passion and focus of the amazing team at Stark Future. Leisure motorcycles do not easily lend themselves to EV technology at this stage, due to challenges like the battery range, packaging, weight and cost. This has resulted in stunted growth of this segment till now. Stark Future has been able to understand and harness the potential of EV technology by dramatically outperforming ICE offerings, without compromising on range, weight, packaging and cost. They have created an absolutely astounding motocross motorcycle – the Stark VARG as their entry into the EV world. We believe that Stark Future has the highest potential for real breakout growth in the EV leisure space with this model, and the potential to use this strong base to extend into other contiguous segments and beyond,” said Siddhartha Lal, MD, Eicher Motors.
