Ashok Leyland and its associate companies will increase their stake in the British bus maker Optare plc to 75.1 per cent, according to a press release from Ashok Leyland.
The Hinduja Group company had acquired a 26 per cent stake in Optare in July 2010. The proposed hike follows a refinancing agreement announced today which, subject to Optare shareholders' approval, will enable synergy with Ashok Leyland's global plans for buses.
The re-financing has been achieved by Ashok Leyland facilitating a credit-line to support Optare's re-banking options and providing a substantially improved working capital facility for the business.
Simultaneously, Ashok Leyland will reach 75.1 per cent shareholding through placement of shares raising new equity.
The release quoting Mr Vinod Dasari, Managing Director, Ashok Leyland, said “We see this as an important element in realising our vision of being among the top five bus manufacturers globally.”
Ashok Leyland of the Hinduja Group is a leading manufacturer of commercial vehicles in India with seven manufacturing locations and associate companies in the Czech Republic, the UAE and a joint venture in Sri Lanka.
Optare is a leading maker of advanced low-floor integral buses and employs around 500 people across the group, principally at its new assembly facility in Sherburn in Elmet, Yorkshire.