Phoenix Asset Management has reportedly increased its stake in Hornby Hobbies to more than 70 per cent.
This news follows Phoenix’s bid to buy the rest of the company, despite Hornby’s board saying that the bid ‘significantly undervalued’ the firm.
Phoenix, who already was a major shareholder in Hornby, previously increased its stake in the company to above 50 per cent last month.
However, under the UK Takeover Code, this increase in share meant that Phoenix had to make an offer for the remaining shares it didn’t own, reports the Financial Times.
Phoenix’s offer of 32.375p per share has since been accepted, valuing Hornby’s shares at £27.4 million.
Following Phoenix’s increase in shares, Hornby is working to turn itself around after several profit warnings.