According to a wide range of news sources including City AM, The Standard, the Independent and others, Hornby has published plans for the company to go private. The Scalextric and model train firm said it plans to re-register as a private company to help with its ongoing overhaul.
The Mike Ashley-backed Scalextric and model train firm has revealed plans to go private, blaming regulatory hurdles and costs involved with a stock market listing.
The Aim-listed group – which has been undergoing a turnaround, with advice from Frasers founder and billionaire Mr Ashley, said it plans to re-register as a private company to help with its ongoing overhaul.
“The board anticipates that for this process of structural change to continue at pace and to maximum effect, operating outside a publicly quoted environment would improve its decision-making ability”
A statement from the Group said: “The board anticipates that for this process of structural change to continue at pace and to maximum effect, operating outside a publicly quoted environment would improve its decision-making ability. At the same time, the board is conscious of the limited liquidity of the company’s shares on Aim balanced against the regulatory burden and cost of maintaining the public quotation,”
Shares in the group – which have already plunged by 50% over the past year – tumbled by over another 32% in Thursday last week.
The Hornby statement added: “The company’s announcement today is not taken lightly. The directors are confident that operating as a private entity will provide Hornby with the necessary agility for swift decision-making and efficient execution of strategy whilst not depriving shareholders of material benefit.”
The announcement last week is the latest blow to London’s struggling AIM market, which has seen a surge in de-listings in recent years.
