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Eicher Motors announces strategic investment in Stark Future, Spain

 



• With this investment, Eicher Motors Ltd. will join the board of Stark Future, and will explore more opportunities to collaborate in the field of electric mobility


Eicher Motors on Thursday announced a strategic investment in Spain's Stark Future SL to develop electric motorcycles and for technology sharing, technology licensing and manufacturing.


The company's board of directors has approved an investment of Euro 50 million for approximately 10.35 per cent equity stake in Stark Future. With this investment, Eicher Motors Ltd. will join the board of Stark Future, and will explore more opportunities to collaborate in the field of electric mobility, the company said.


“The Board of Directors of EML has approved an investment of €50 million in Stark Future, in which EML will enter into an investment agreement, shareholder agreement and a technical cooperation agreement (“Transaction Documents”) with Stark Future to replace the electric motorcycle. Eicher Motors said in its regulatory filing


"A cash consideration of €50 million (fifty million euros) to be invested in Stark Future SL in one or more tranches," it added.


However, the acquisition cost is pegged at Euro 903 per share, including 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 such as battery range, packaging, weight and cost. As a result The growth of this segment has been stunted so far. 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 An absolutely stunning motocross motorcycle - Stark has created the class as their entry into the EV world. We believe Stark Future has the highest potential for real breakout growth in the EV leisure sector with this model, and will use this strong foundation to build on other contiguous Has the potential to expand across segments and beyond," said Siddhartha Lal, MD, Eicher Motors.

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