Rich listers’ rescue of Ubco: Sale price revealed

Some of the 175 Ubco bikes bought by Australia Post. Now that it's been saved from receivership, the Tauranga firm hopes to expand the pilot to more of Australia Post's 10,000 posties.

Three rich-list families, plus the multinational Jubilee Investments, paid $5 million for Ubco, the latest receivers’ report reveals.

“The transaction included the transfer of shares in Ubco subsidiaries, intellectual property, goodwill, plant and equipment, stock, and certain contracts, together with surrender of leasehold properties,” receivers Stephen Keen and Ian Ruscoe said.

The Mount Maunganui-based electric motorcycle maker collapsed in January, owing $35.7m.

In 2021, at the height of the venture capital boom, the firm raised funds at a $50m valuation.

In their latest report, released late yesterday, Keen and Ruscoe (both of Grant Thornton) said the $5m from the sale would go toward $7.1m owing on a general security agreement (GSA).

Jubilee is affiliated with Ubco’s contract manufacturer in Taiwan, TDK. The rich-listers, who hold a majority of the new company, are Sir Stephen Tindall (via his K One W One vehicle), Peter Goodfellow (via Avalon Asset Management) and the Holdsworth family (which via its family office, Evander Management, holds a 55% stake in NZ’s largest homegrown IT services firm, the $1.5 billion revenue Datacom, along with its myriad investments in start-ups) ...

Sir Stephen Tindall, one of Ubco's three white knights. Photo / Greg Bowker

The receivers were appointed by Goodfellow’s Avalon to claw back money owed through a General Security Agreement dated October 31, 2024.

Ubco fleet manager Grant Payton earlier told the Herald that 21 Ubco staff will work for the reborn company which, after a series of restructures, was down to 31 employees by the time of its receivership, from 109 last year.

Ubco sold three bikes to NZ Post shortly before its receivership.

The firm will stay at its Mount Manganui base, which will remain the hub for management, research and development and product design, while Taiwan’s TPK will return as the contract manufacturer.

Oliver Hutaff has returned as chief executive.

The acquisition also includes Ubco’s Australian subsidiary, and Ubco’s New Zealand finance subsidiary, which services fleets on subscription, neither of which was placed into receivership.

Ubco, founded in 2015, sold more than 6000 of its electric motorcycles, but was caught in an endless series of capital-raising rounds as it scrabbled for cash.

There are 60 Ubco 2x2 electric motorbikes in Domino's New Zealand delivery fleet. The bike maker got its foot in the door by offering the pizza chain a monthly subscription model rather than buying the 2x2s outright. Photo / Chris Keall

Some insiders told the Herald the firm tried to expand too far and too fast.

What will be different this time around?

“It’s a much smaller team,” Payton said. “We won’t try to be everything to everyone in every market in the world.”

Ubco will still make single bike sales to urban hipsters, but the focus will be on fleets.

Domino's was the pilot customer for a "monthly subscription" fleet deal covering Ubco's bikes and software to mange them.

Shortly before its receivership, the firm sold 175 of its new “Duty” model to Australia Post, plus three to NZ Post in a more modest pilot. Domino’s was also a marquee customer.

“Still heavily engaged with Australia Post and other postal agencies. It wasn’t easy, but we kept those doors open,” Payton said.

Now open for defence business

Another change: soon after the receivership, Mark Phillips, managing director of Ubco Australia between March 2020 and September 2022, blamed the collapse in part on squeamishness about pursuing defence opportunities.

Payton said that is no longer the case.

“The military is absolutely a focus. Anywhere that need a utility bike.”

Farms and conservation agencies will also be points of focus.

Two new distributors have been appointed: Toad in Europe, which Payton is hoping will lead to fleet deals with French military and police, and The Utility Bike Company in the US, which has been formed by a former Ubco sales manager.

Kiwi ‘legacy’ continues

Grant Thornton’s Keen says he’s “delighted” with the outcome after a “robust sales process”.

“It’s fantastic to see a Kiwi business continue its legacy with key team members remaining – something that’s particularly challenging in today’s economic environment, where distressed businesses face significant loss of talent and even closure," Keen said.

An Ubco 2X2 at Auckland's Hobsonville Point. Photo / Chris Keall

While Utility Fleet Vehicles’ primary focus is on commercial fleets, individuals, including past purchasers from the former business, can still buy Ubco bikes and parts through the dealer network, Payton said.

Key fleet trials are under way and further updates on partnerships and product launches are expected in the coming months.

“Not many companies come through a process like this with their core team retained, their product refined, and their direction clearer than ever,” Hutaff said.

“That tells you a lot about the strength of what we’ve built and where we’re headed.”

The new ownership structure

Ubco is now owned 39.04% owned by Jubilee, 38.49% by Goodfellow’s Avalon, 12.61% by the Holdsworth family’s Avalon and 9.50% by Tindall’s K1W1.

Other investors at the time of the collapse who are not part of the new ownership include venture capital firm Global From Day One (GD1), which was the single largest local shareholder with its 21% stake, rich lister Peter Mafsen and retail investors who bought into Ubco via various crowdfunded equity raises on Snowball Effect who collectively held 4% of the company.

Staff were not owed any money.

Ubco also owed Inland Revenue $836,545 in GST and PAYE.

The firm also received a $400,000 repayable grant from Callaghan Innovation.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.