NABI dumps Optare in MBO
Friday, July 29, 2005, 12:59
Bus maker NABI Rt announced on Friday that it had completed an agreement to sell its UK subsidiary Optare Holdings Ltd. to its management for a total Ł11.8 million. NABI said the proceeds will be used to reduce its debt burden. Optare was acquired by NABI in early 2000 as part of an expansion push beyond its core North American bus market. However, insufficient synergies between its Hungarian, US and UK operations has forced the bus maker dump Optare. On the other hand, NABI has secured a license for the manufacture and sale of the recently launched Optare Tempo single deck bus for the Central and Eastern European markets, and entered into agreements with Optare to provide spare parts and technical services for the NABI buses.