Hornby is to be taken over by Pheonix UK after an investor battle led to a rebel investor selling its stock.
Pheonix will now hold 55% of Hornby’s stock after buying the 20% holding of New Pistoia Income Limited which had joined the bid in April to have executive chairman Robert Canham ousted.
The shareholders who proposed the buyout accused Canham of presiding over a failed strategy for the company and so moved to have him removed, however it was announced yesterday that Canham has stepped down from the company.
The move came on the day troubled Hornby revealed annual results showing a 15pc fall in revenue to £47.4m and a growing underlying pre-tax loss of £6.3m.
Pheonix now stands obligated under law to buy out the remaining shares of the company, valued at £27.4m.