Phoenix Asset Management has made a takeover for model railway maker Hornby, sending shares nearly five per cent higher this morning.
Phoenix has offered 32.375p per share for the part of the company it doesn't already own, valuing it at £27.4m. The company said it expects the acquisition to settle on 23 June.
The move comes after Phoenix's UK Fund agreed to buy 17.6m Hornby shares from New Pistoia Income, which it will then transfer to the Aurora Investment Fund; another managed by Phoenix. That takes its total holding to 55.2 per cent.
Phoenix said it "recognises the importance of the Hornby management team and employees to the future success of Hornby".
It added that said until a review into Hornby's business is completed, it "cannot be certain whether any changes will be necessary".
This morning Hornby announced full-year results that were on track with expectations, as it moves into the next stage of its turnaround plan.
But there was some shareholder discontent bubbling earlier this year, before the firm successfully warded off an attempt to oust chairman Roger Canham, with one shareholder describing Hornby's five years under Canham as "disastrous".
Back in April, investors Ian Alexander Anton and New Pistoia, who between them own 20 per cent of the company, called a requisitioned general meeting (RGM), with two resolutions: to boot chairman Roger Canham off the board, and to elect Anton himself in his place. However, the resolution was called off before the meeting was held.
Canham is also non-executive chairman at Phoenix.