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LONDON - Hornby plc, the international hobby products group, has announced its intention to voluntarily cancel the trading of its ordinary shares on AIM and re-register as a private limited company. This decision comes after the Board’s evaluation that such a move would serve the company and its shareholders better by providing greater operational agility and reducing regulatory burdens.
The cancellation is scheduled to take effect on April 10, 2025, following approval from shareholders at a general meeting set for April 1, 2025. The re-registration as a private company is expected to be completed in the week commencing April 28, 2025, contingent on the cancellation’s approval.
Hornby’s board believes that the company’s current public status and the associated costs are no longer justifiable given the limited liquidity of its shares on AIM and the significant overheads of maintaining a public listing. The Directors are confident that the transition to a private entity will not deprive shareholders of material benefits but will instead facilitate more efficient strategy execution and decision-making.
The company has received irrevocable undertakings from major shareholders, including Castelnau and Aurora, which hold 54.89% and 14.90% of the issued share capital, respectively, to vote in favor of the proposed changes. These commitments, along with those from Directors who own shares, represent approximately 70.33% of the voting power.
For shareholders looking to maintain or liquidate their investments post-cancellation, Hornby has outlined four options: retaining their shares in the private entity, selling shares prior to cancellation, exchanging shares for Castelnau shares through an exchange facility, or selling shares for cash via a matched bargain facility. The exchange facility will operate until May 9, 2025, allowing shareholders to indirectly maintain their interest in Hornby by acquiring shares in Castelnau, which trades on the Specialist Fund Segment of the Main Market of the London Stock Exchange (LON:LSEG).
Despite temporary shipping delays and weaker trading in early 2025, Hornby has reported a positive customer response to new product ranges and a 22% year-on-year increase in associated orders, indicating continued sales growth and progress in business performance improvement initiatives.
The company’s strategic actions in recent years, including acquisitions, divestments, and operational restructuring, have been part of a broader commitment to structural change and operational transformation intended to benefit all stakeholders.
The information in this article is based on a press release statement from Hornby plc.
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