Hornby surges as Frasers Group bumps stake up to 8.9%

(Sharecast News) - Hornby surged on Friday after Mike Ashley's Frasers Group lifted its stake in the model train maker to 8.9%. Frasers - which also owns stakes in Boohoo, Asos and Currys, among others - bought just over 11.1m shares in the company, taking its total holdings to just under 15.2m.

Frasers chief financial officer Chris Wootton said: "Frasers Group has a vision to build the planet's most admired and compelling brand ecosystem. Hornby's portfolio of unique heritage brands is 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."

Hornby chief executive Olly Raeburn said: "Frasers Group has built a powerful ecosystem through its brand partners, scaled shared services, and distribution channels. We have long admired their approach to merchandising and logistics and welcome them as a supportive shareholder.

"We look forward to exploring commercial opportunities in working together to unlock the full potential of Hornby's much loved brands."

At 0840 GMT, Hornby shares were up 21% at 25.50p.