Investment fund to make offer for toy firm Hornby

0 Takeover announcement coincided yesterday with news of narrower losses at the toymaker Phoenix Asset Management is to launch a mandatory takeover offer for embattled toymaker Hornby after picking up a majority stake in the firm.

The investment fund has agreed to buy 17.6 million Hornby shares for 32.375p from New Pistoia Income, which will give it a 55.2 per cent holding in the company.

This in turn will trigger a mandatory offer for the remaining shares, which will value Hornby at £27.4 million.

Phoenix said that following completion of the offer, it intends to “increase its understanding of Hornby and its longer-term strategy for delivering further earnings growth following the completion of its turnaround strategy, by entering into further discussions with its management and the board of Hornby”.

The takeover announcement came after Hornby said that losses narrowed last year as the firm declared its turnaround strategy was on track. Pre-tax losses fell to £9.5 million in the year to 31 March, down from £13.5m previously.