Ashok Leyland to acquire UK-based Optare for $7.5 Million

Friday, 30 July 2010, 11:46 Hrs   |    1 Comments
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Chennai: As part of expansion into new markets, Hinduja Group flagship company Ashok Leyland would acquire 26 percent stake in UK-based bus manufacturer Optare for $7.5 million ( 35 crore).

Optare is a $125 million company. In the last couple of years, it has not made profits, Europe being in recession.

According to Ashok Leyland's Executive Vice-Chairman, V Sumantran, the company would get three kinds of benefits. First, it will participate in the growth of the European bus market through Optare. Second, it will have access to the products and technology of Optare, which could be (where necessary) modified and brought into India. Third, Optare and Ashok Leyland will jointly develop products and hold the intellectual property together.

Sumantran also pointed out that Hi-bus which Ashok Leyland showcased in January this year had several common design elements with Solo Hybrid bus and the Electric bus of Optare. The $7.5 million that Optare will get will be used to pay down debt, and in new product development, Sumantran said.
Source: PTI
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