Hornby also named David Adams as interim chairman to replace Roger Canham who resigned from the Hornby board with immediate effect on Wednesday.

Canham is also the non-executive chairman of Phoenix Asset Management.

Phoenix Asset on Wednesday offered to buy 17.6 million shares of Hornby at 32.375 pence per share from New Pistoia Income Ltd (NPIL), triggering a mandatory takeover offer that valued the toymaker at about 27.4 million pounds.

NPIL, in April, called for a meeting to remove Hornby's Canham amid falling sales and multiple profit warnings. Phoenix Asset struck a deal with smaller stakeholders Ruffer LLP and Downing LLP to vote against NPIL's proposal.

Shares in Hornby, which has a market valuation of 27.3 million pounds, were slightly up at 32.50 pence at 1149 GMT.

(Reporting by Rahul B in Bengaluru; Editing by Shounak Dasgupta)