Ashok Leyland, the leading commercial vehicle maker in the Indian market, announced on Tuesday that it has acquired 49.1 per cent stake in the UK based bus manufacturer Optare Plc. With this acquisition, which costed the firm over Rs 30 crore, the total holding of the firm has reached-up to 75 percent in this firm. Initially, the company had acquired a 26 percent stake in the Optare in July 2010.
In a statement given on Tuesday, the company said, "Ashok Leyland, together with its associate companies, will increase its stake in the British bus maker Optare plc to 75.1 per cent, thanks to a re-financing agreement announced today." The statement adds, "The board of directors of the company at their meeting held today approved the proposal for making additional investment up to GBP 40,04,495 in Optare Plc, UK."
While speaking on the latest acquisition, Mr. Dheeraj G Hinduja, Ashok Leyland Chairman, said, "We are confident that, together, we can surge ahead with Optare, taking advantage of the large opportunities for growth and development we see based on synergy and integration with Ashok Leyland's bus business."
On the other hand, from the Optare’s side, Mr. Jim Sumner, Chief Executive Officer, said that the latest acquisition by Ashok Leyland is great news for Optare's customers, employees and suppliers and secures stability and the long-term future of the business. The re-banking represents a defining moment in the company's 3-year turnaround plan which commenced in June 2009.
