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Optare

  • BY: Andrew Hore |
  • POSTED: 07/01/2010 |

Shares in bus manufacturer Optare perked up after it revealed that it was in talks with a possible bidder.

The shares rose 0.875p to 6.25p each, which values the company at 14.5m. In September 2009, Optare raised 8.6m at 7p a share. When Optare reversed into Darwen Holdings it had to cut the price shares were placed at from 40p to 30p. This placing raised 16m.

Optare had previously said that it hoped to secure a strategic partner. This could end up being achieved via a takeover bid but there is no certainty that there will be an offer.

Optare has been struggling in recent times and it is losing money. Short-time working is helping to keep down costs but breakeven is unlikely to be achieved before the second half of 2010.

Net debt is currently 8.2m but this should be reduced by the sale of the Rotherham factory. 

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