Ashok Leyland raises stake in bus maker Optare

It acquired a 26 per cent stake in Optare, which is based in Sherburn in Elmet, in July last year as part of a long-term alliance.

Optare has raised £4m from the deal which also gives it access to new banking facilities through Ashok Leyland, part of the Hinduja Group and India’s second largest commercial vehicle manufacturer.

However, the shares were issued to Ashok Leyland yesterday at 0.27p, compared to Monday’s closing price of 1.37p.

Optare said it had not been able to secure the facilities it needed through discussions with its bank but had agreed a deal with Ashok Leyland giving it access to a £12m credit line. The deal was dependent on Ashok Leyland taking its stake beyond 75 per cent.