ASHOK Leyland, one of India's biggest commercial vehicle manufacturers, is to take a 26% stake in the Lancashire bus maker Optare.

Optare said the deal will enable it to improve cashflow, increase export sales and tap into low cost sourcing channels used by Ashok, which is 51%-owned by the Hinduja Group.

The firm will raise £5m by issuing 99.3 million new shares at 5p each to Ashok, which has emerged as the unnamed suitor considering a takeover approach in January.

The deal will enable Chennai-based Asho......for the full story register now for free or login below...