Hornby criticises takeover bid figure saying it '˜undervalues' firm
Model toymaker Hornby has said that a takeover bid launched by Phoenix Asset Management 'significantly undervalues' the company.
Phoenix said on Wednesday that it had commenced a mandatory takeover offer for the troubled firm, valuing it at £27.4 million, after picking up a majority stake.
But Hornby said the offer, made at 32.375p per share, “significantly undervalues” it and its future prospects.
The Scalextric-to-Airfix firm added that it will write to shareholders with a formal response to the offer, but strongly advised investors to take “no action for the time being”.
The investment fund agreed on Wednesday to buy 17.6 million Hornby shares from New Pistoia Income, giving it a 55.2% holding in the company.
This, in turn, triggered a mandatory offer for the remaining shares.
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”.