Optare borrows £1.5m from investor

BUS company Optare has announced that it has agreed a deal to borrow £1.5m from “a major shareholder” which it will use for working capital.

The loan is being made for four-month period while it is in the midst of re-banking talks and is repayable on demand. The interest rate being paid is 8% above base rates.

Yesterday, Darwen-based Optare announced that Indian company Ashok Leyland had increased its stake in the company to more than 75% through a deal which allowed it to raise £4m.

The shares were issued to Ashok at a significant discount – 0.27p, compared to Monday’s closing price of 1.37p.