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(Alliance News) - Shares in Hornby PLC shot up on Friday, after the company announced Frasers Group PLC has upped its stake in the company, the Sports Direct owner's latest target in its retail sector investment frenzy.
Hornby is a Margate, England-based model railway company. Shares in the Hornby were up 36% at 28.50 pence each in London on Friday morning.
The company said that Frasers, the sporting goods retailer and owner of the House of Fraser department store chain, has acquired an additional 11.1 million shares in the company. This takes Frasers Group's total holding in Hornby to 15.2 million shares, or 8.9% of the company.
Chris Wootton, chief financial officer at Frasers, said: "Frasers Group has a vision to build the planet's most admired and compelling brand ecosystem. Hornby's portfolio of unique heritage brands are already part of GAME's product offer and we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution. This is consistent with our strategy of pursuing strategic interests to enhance value for all stakeholders."
This latest move is very much in line with Frasers Group's recent UK retail sector investment binge.
Frasers has steadily increased its stake in fast-fashion retailer Asos PLC to around the 25% mark. According to a regulatory filing earlier this month, it also has just over a 22% stake in boohoo Group PLC.
It also has a stake in Currys PLC, a consumer electricals retailer that has recently received bid interest.
In December, Frasers snapped up the luxury clothier MatchesFashion for GBP52 million and, in January, bought Wit Fitness out of administration, adding the gym and fitness clothing group's assets to its portfolio.
Shares in Frasers were down 0.1% at 831.00 pence per share in London on Friday morning.
By Hugh Cameron, Alliance News reporter
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