Hornby has announced that executive chairman Roger Canham has quit the board with immediate effect.
Following the release of its latest financial results, it has come to light that Hornby is potentially facing a mandatory takeover after its largest shareholder bought out a fund involved in the failed coup.
Media outlets have reported that Hornby’s largest investor, Phoenix, would own 55% of the company’s stock after buying New Pistoia Income Limited’s 20% holding. In April of this year, New Pistoia had joined an unsuccessful attempt by investors to remove Hornby’s executive chairman, Roger Canham, whom those involved claim had presided over a failed strategy for the company. Roger Canham is also a director of Phoenix Asset Management Partners, the investment manager behind Phoenix UK.
Under City rules covering majority ownership, the sale of the shares by New Pistoia means Phoenix is now obliged to offer to buy the shares it does not own. Those investors would get just over 32p per share – the same price paid by Phoenix – valuing Hornby at £27.4m. Rather than taking the company private, it is claimed that Phoenix plans to keep Hornby’s listing on London’s AIM market in order to maintain transparency.