Ashok Leyland's UK arm Optare to delist from Alternative Investment Market

Says will use the funds in product support instead

Ashok Leyland's UK arm Optare has decided to delist from the Alternative Investment Market (AIM).  

The company said there are significant costs associated with maintaining a quotation on AIM, which can be used for product support.

"After careful consideration of the long term growth plans for Optare, the Board have taken the decision to delist from the Alternative Investment Market (AIM)," it said in a statement.

"There are significant costs associated with maintaining a quotation on AIM. The Board of Directors believe these costs outweigh the benefits and that these funds would be better deployed to support Optare's investment in product support and future technology as part of its growth strategy," said Optare.

Commercial vehicle major Ashok Leyland, part of the Hinduja Group, will remain the major shareholder and continue to support the company in its growth strategy.

Early this year, Ashok Leyland said Optare, which manufacture bus, will turn cash positive next year.

In 2010, it picked up 26% stake in UK-based Optare Plc as part of its global bus strategy, which was increased to 75.1% in January 2012.