Hornby urges shareholders to reject latest Phoenix offer

Hornby issued an updated to the market on Monday, noting the announcement by Phoenix UK Fund on Friday that it had despatched an offer document to Hornby shareholders in relation to a mandatory unconditional cash offer by Phoenix for the Hornby shares not already held by members of the Phoenix Concert Party.

The board of the AIM-traded company said it considered that the mandatory cash offer of 32.375 pence per Hornby share “significantly undervalues” Hornby and its future prospects.

It also noted Phoenix UK Fund's belief that Hornby should maintain its AIM listing, and its stated support for maintaining a board of directors that complied with the QCA Corporate Governance Code.

“The board will be writing to shareholders with its formal response to the offer in due course.

“Shareholders are strongly advised to take no action for the time being,” the board said.

Further announcements would be made “as and when appropriate”, Hornby promised.