Castelnau Group Ltd on Monday said it assisted Hornby PLC, which is part of its portfolio, in its 25% stake acquisition in Warlord Games Ltd.
On Friday last week, Hornby said it paid £1.3 million for the minority stake in ‘one of the world’s leading producers of’ historical tabletop wargames, miniatures and accessories‘.
The acquisition also entails the option to acquire a majority stake on or around the second anniversary of this initial acquisition.
On Monday, Guernsey-based closed-ended investment company Castelnau said it played a ’material role‘ in the transaction, working closely with both parties.
‘Castelnau was very involved in structuring the transaction which provides Hornby with the option in two years to become the majority shareholder in Warlord while also giving the founding shareholders a path to a full exit under a clear, pre-agreed framework should they wish to do so,’ Castelnau said.
Castelnau also said it provided assistance with funding, financial due diligence and legal support.
‘From the very early stages of the transaction, helped ensure a strong relationship and consistent understanding between Hornby and Warlord,’ the company said.
Graham Shircore, chief executive officer of Castelnau at Phoenix Asset Management Ltd, commented: ‘This is an excellent example of how Castelnau can comprehensively assist both its portfolio businesses and the owners of businesses who are interested in becoming part of the wider group. Applying Castelnau’s expertise and resources across all facets of the transaction has, we hope, been of considerable benefit all round.
‘We hold the Warlord team in the highest regard and are very pleased to welcome them to the wider group. We look forward to continuing to assist them and Hornby in maximising the significant opportunities we see on both sides.’
Castelnau shares were quoted at 74.00 pence each in London on Monday morning, having last traded at the same price on Friday last week. Hornby shares were 4.7% higher at 17.80p.
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