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Hornby shares jump as Frasers Group increases stake to 8.9%

Shares in Hornby (LSE: HRN) jumped by 29% on Friday afternoon after the company announced that Frasers Group (LSE: FRAS), owner of Sports Direct and House of Fraser, has increased its stake in the company …

Shares in Hornby (LSE: HRN) jumped by 29% on Friday afternoon after the company announced that Frasers Group (LSE: FRAS), owner of Sports Direct and House of Fraser, has increased its stake in the company to 8.9%. This follows Frasers’ recent acquisition spree within the UK retail sector.

Hornby confirmed that Frasers acquired an additional 11.1 million shares, bringing its total holding to 15.2 million, or 8.9% of the company. This makes Frasers the third-largest shareholder in Hornby.

Frasers’ Chief Financial Officer, Chris Wootton, said the investment aligns with the group’s strategy of pursuing strategic interests. He mentioned Hornby’s “unique heritage brands” and potential for collaboration in logistics and distribution, leveraging Frasers’ extensive network.

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This move mirrors Frasers’ recent investments in other UK retailers. The group holds a 25% stake in Asos and a 22% stake in Boohoo Group. Additionally, it has a stake in Currys, a consumer electronics retailer currently attracting takeover interest. Shares in Frasers remained flat on Friday despite the Hornby news.

The increased stake in Hornby suggests Frasers’ interest in exploring potential collaborations within the toy and hobby market. Its retail network and logistics expertise could offer Hornby opportunities to reach new customers and expand its market reach.

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