Ashok Leyland, the flagship company of the Hinduja Group, will pick up 26 per cent equity stake in the U.K.-based bus maker Optare plc.
This follows an agreement inked between the two for a long-term strategic co-operation. The investment will be $7.5 million.
V. Sumantran, Executive Vice-Chairman, Hinduja Automotive Group and member of Ashok Leyland board, told a press conference here on Thursday that the stake buy in Optare was being facilitated through a fresh offer at a “competitive market rate”.
The move to buy a stake in the U.K. bus company was a logical extension of a well thought-out strategy of Ashok Leyland to insulate itself against the cyclical nature of the commercial vehicle business and get into unexplored adjacent sectors and also spread to new geographical locations, he reasoned. [Read more...]





