Hornby Plc (LON:HRN) has once again slammed the recent takeover offer from its largest shareholder which it thinks “significantly undervalues” the Scalextric slot car racing to model train maker.
Investment firm Phoenix Asset Management launched a 32.375p a share bid for Hornby last Wednesday having been obliged under City rules to make an offer to buy the rest of the AIM-quoted firm after upping its stake to above 50% the previous week.
READ: Hornby slams Phoenix takeover offer which it says ‘undervalues’ company
Posting its official response statement today to shareholders, the hobbies group reiterated that its directors “believe that the Offer does not reflect an adequate premium for control and significantly undervalues Hornby and its prospects.”
Hornby said, as a result, its board “unanimously recommend that Hornby Shareholders reject the Offer.”
It added: “In addition, the Hornby Directors unanimously recommend that shareholders should take no action in relation to the Offer and should not sign any document sent by Phoenix or its advisers.”
Hornby recently implemented a turnaround plan to try and turn the business around after several profit warnings in recent years.
Last Wednesday, the same day as the Phoenix offer was first revealed, the Scalextric maker said the strategy was having an effect as it reported a narrowed loss for last year.