Leyland close to overseas acquisition

Ashok Leyland, the country's second largest commercial vehicle maker, would announce an overseas acquisition in a week, Dheeraj Hinduja, president, Hinduja group, said today. He, however, declined to provide further details. Ashok Leyland is a part of the Hinduja group.

Industry sources said the company was looking at strengthening its presence in Africa and the Middle East. In the overseas markets, Ashok Leyland is planning to set up a bus body building unit in Dubai.

Ashok Leyland has decided to raise $150 million (Rs 675 crore) to fund its expansion plan. The funds will be raised through foreign currency convertible bonds or notes (FCCB/FCCN), global depository receipts (GDRs) or private placements.

Ashok Leyland has plans to increase the ceiling of foreign institutional investors (FIIs) investment in the equity share capital of the company from 24 per cent to 40 per cent.