London, Jan 03(ANI): British bus makers Optare will vote this Friday to decide the fate of the company, with Indian moguls Hinduja brothers favorites to buy a majority stake in the company.
The Hinduja's already have a 26 per cent stake in the company through bus and coach manufacturer Ashok Leyland, the Daily Mail reports.
They saw off the challenge from UK's largest bus and coach manufactures Alexander Dennis(ADL), a group backed by Scottish millionaire Sir Brian Souter to claim a major stake in one of the last remnants of the British Leyland, Optare.
Hinduja's have offered a loan deal of 12 million pounds to the troubled company and in return have asked for a share placing of 4 million, which would eventually triple their stakes in the company to 75.1%.
Shareholders would vote during a general meeting of Optare this Friday to make a final decision and not many have accepted the decision with open arms, the paper said.
The major hitch, which can be detrimental for this deal, is that through this, the Hinduja's would be able to acquire the shares at the equivalent of 0.27p, which amounts to discount of 80 per cent on their value the day the plan was announced.
"If they gain control at the proposed price it would dilute our holdings. This is another example of overseas businesses seeing value and coming in to buy it up rather cheaply, and that is very frustrating," said one of the top ten investors of the company.
"We are a long-term shareholder and we do not want it to be sold at this time," he added.
But some of the shareholders do believe that this is a necessary step and is important for the functionality of the company in future.
"The company has not had an easy time of it, and has been trying to improve itself. But we are content that this is probably the best solution to the company's difficulties available at the moment," said another institutional shareholder.
Meanwhile Optare has claimed that it has received major undertakings from various shareholders, which constitutes a total of 34.7 per cent of shares, including Ashok Leyland, backing this deal. (ANI)