It says this follows a financial restructuring of Algeco Scotsman which has resulted in a significant reduction in debt and an agreement by shareholders to invest up to an additional ?125m.

CMI has entered into an option agreement with the principal shareholder of the company, TDR Capital, to invest up to ?10m of new equity into the company on broadly the same terms as the TDR investment on or before 30 April 2010, which would allow CMI to significantly increase its equity shareholding.

The board wishes to exercise this option and is currently investigating ways of funding this exercise price.

Further details of this option agreement, and the board?s proposals and recommendations, will be set out in a circular which CMI expects to send to its shareholders in January.

The carrying value of CMI?s holding in the Company, as reported in the interim results to 31 July, was £17.5m.

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