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MOTORINDIA
l
January 2012
Ashok Leyland hikes stake in
Optare to 75.1 per cent
Ashok Leyland, to-
gether with its associate compa-
nies, will increase its stake in the
British bus maker, Optare plc, to
75.1 per cent, subject to approval by
the shareholders of Optare, under a
re-financing agreement announced
on December 20. The company had
initially acquired 26 per cent stake
in Optare in July 2010 as part of a
long-term strategic partnership. This
move fully integrates Optare into
Ashok Leyland’s global strategy for
buses.
The re-financing has been
achieved by Ashok Leyland fa-
cilitating a credit-line to support
Optare’s re-banking options and
providing a substantially improved
working capital facility for the busi-
ness. Alongside, Ashok Leyland
will reach 75.1 per cent of the
company’s share capital through
placing of shares, raising new eq-
uity.
Mr. Vinod Dasari, Managing Di-
rector, Ashok Leyland, commented:
“We see this as an important ele-
ment in realizing our vision of being
among the top 5 bus manufacturers
globally. Through leveraging the
synergies of the two companies, we
are confident that going forward we
will be able to accelerate technology
sharing, develop future-ready prod-
ucts and substantially and quickly
increase our global footprint.”
Mr. Jim Sumner, Chief Executive
Officer, Optare, said: “This is great
news for Optare’s customers, em-
bus industry
ployees and suppliers and secures
stability and the long-term future of
the business. The re-banking
represents a defining mo-
ment in the company’s
3-year turnaround plan
which commenced in
June 2009. In addition,
our recent move to a
new factory in Sherburn
gives us the capacity
and modern assembly
facilities necessary to
fully capitalise on the
additional sales and
joint product devel-
opment opportunities
which our deeper part-
nership with Ashok Leyland
will undoubtedly deliver.”
According to Mr. John Fickling,
Chairman, Optare, given the global
economic challenges, this is a game
changing deal for Optare. It ensures
that Optare can grow and prosper
given the challenging dynamics in
an ever-changing market place.
“We are confident that, together,
we can surge ahead with Optare
taking advantage of the large
opportunities for growth and de-
velopment we see based on syn-
ergy and integration with Ashok
Leyland’s bus business.”
– Mr. Dheeraj G. Hinduja, AL Chairman