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Ashok Leyland increases stake in Optare PLC to 93% with £45 million investment
Team Finance Saathi
02/Apr/2025
What's covered under the Article:
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Company invests £45 million (₹500 crore) in Optare PLC, increasing its stake from 92.59% to 93%.
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Optare PLC’s Board approved the allotment of 64.96 billion shares at £0.006927 each.
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The investment strengthens the company’s position in the UK automotive sector and expands global operations.
The company has strengthened its presence in the UK automotive sector by investing £45 million (₹500 crore) in Optare PLC, its UK-based subsidiary. This move has led to an increase in its shareholding from 92.59% to 93%.
Breakdown of the Share Allotment
On April 1, 2025, the Board of Directors of Optare PLC approved the issuance of 64,96,35,55,352 ordinary shares at a nominal value of £0.001 per share. These shares were allotted at an issue price of £0.006927 per share, which includes a premium of £0.005927 per share.
Strategic Importance of the Investment
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The increased stake strengthens the company’s control over Optare PLC, allowing for more strategic decisions and financial oversight.
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The equity infusion will provide Optare PLC with the necessary funds to enhance production capabilities, expand research, and develop advanced vehicle technologies.
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The move aligns with the company’s long-term goal of expanding its international footprint and securing a stronger position in the UK market.
Financial and Market Implications
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The investment reaffirms the company’s commitment to Optare PLC’s growth and reinforces investor confidence.
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This step is expected to enhance financial stability and support future expansion plans of Optare PLC.
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It may influence the UK stock market, given the significance of the company’s investment in the automotive sector.
Conclusion
The company’s decision to increase its stake in Optare PLC through a £45 million investment is a major step in strengthening its global presence. This move will not only support the subsidiary’s expansion but also solidify the company’s position in the UK market.
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