Rule 2.8 Statement

RNS Number : 1511Q

Ashok Leyland Ld

29 July 2010

 



The City Code on Takeovers and Mergers Rule 2.8 Statement

Ashok Leyland Limited ("Ashok") noted that a circular issued by the board of Optare plc ("Optare") on 29 July 2010 containing details of a number of previous announcements made in connection with a strategic partnership which may or may not lead to an offer being made for the majority of the issued share capital of Optare.

Ashok has confirmed that it is no longer considering an offer for the Optare and, accordingly,  Optare has ceased to be in an "offer period" for the purposes of the City Code on Takeovers and Mergers (the "Code").

Ashok reserves the right (on behalf of itself and anyone acting in concert with it) to acquire further shares in Optare, subject to and in accordance with the requirements of the Code and other applicable regulations.  For the purposes of Rule 2.8 of the Code, Ashok reserves the right to announce or participate in an offer or possible offer for Optare and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code within the next six months following the date of this announcement:

1.            with the agreement or recommendation of the board of directors of Optare; or

2.            following an announcement of a firm offer or possible offer by or on behalf of a third party for Optare; or

3.            following the announcement by or on behalf of Optare of a "whitewash" proposal (for the purposes of Note 1 of the Notes on Dispensation from Rule 9) or a reverse takeover (as set out in Note 2 on Rule 2.3); or

4.            with the consent of the Panel, if there is a material change of circumstances.

Information about Ashok

Ashok is an Indian commercial vehicle manufacturing company based in Chennai selling approximately 64,000 vehicles and about 19,000 engines annually and is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle segment, with a market share of 23.3 per cent. in 2009-10 and is a market leader in the Indian bus market. Ashok reports that it now carries 60 million bus passengers a day, more than the entire Indian rail network, and already has a joint venture with Nissan Motor Company, developing a light commercial vehicle product platform.

The sales turnover of Ashok in 2009-10 was US $1.6 billion and PAT was US $94 million.

Ashok has seven plants in India, one in the Czech Republic and one in the Middle East with a current global capacity of over 150,000 buses and trucks.

In 2006 Ashok became the first automobile company in India to achieve the internationally renowned TS16949 certification.

The directors of Optare believe that Ashok's two strategic business units in India and Detroit, USA, underpin its substantial global reach in technology-enabled end-to-end bus design, engineering, prototyping, manufacturing and testing and validation.

Ashok, listed on the Bombay Stock Exchange, is 51 per cent. owned by the Hinduja Group and has a current market capitalisation of approximately £1.3 billion. 

 

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