The country's largest two-wheeler manufacturer, Hero MotoCorp on Thursday said it is finalising a collaboration agreement with the California-based Zero Motorcycles, with an equity investment of up to $60 million in cash consideration.
The collaboration will focus on co-developing c, the company said in a statement, adding that its stake is expected to be around 6.4 per cent on a fully diluted basis.
Zero Motorcycles is a manufacturer of premium electric motorcycles and powertrains with a traditional motorcycle soul.
"This investment is not a related party transaction. No promoter/ promoter group/ group companies have any interest in the entity in which the investment is being made," Hero MotoCorp said, adding that investment is subject to execution of definitive documents and completion of certain conditions customary to a transaction of this nature.
Cost of acquisition or the price at which the shares are acquired is $10.75 per share and the percentage of shareholding will depend upon the exact contribution by the company, and the completion of a fund raise by Zero Motorcycles.
“In keeping with its vision ‘Be the Future of Mobility’, Hero MotoCorp is addressing the electric mobility space through a range of organic and inorganic /collaboration initiatives, and will launch its first electric product under its emerging mobility brand Vida, powered by Hero, on October 7,” it added.