Steinhoff raises Poundland offer | Fin24
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Steinhoff raises Poundland offer

Aug 11 2016 09:15
Paul Jarvis and Sam Chambers

London - Steinhoff International Holdings raised its agreed bid for UK discount chain Poundland Group after an activist investor built a stake that threatened to derail the deal.

The South African suitor increased the offer by 5 pence a share to 227 pence a share, valuing Poundland at £610m, it said in a statement on Thursday.

The new bid comes after Elliott Capital accumulated a 17.5% stake in Poundland last month through derivative contracts.

Steinhoff’s original bid required 75% of the target company’s shareholders to approve the transaction.
Under the revised offer, the bid could proceed with more than 50% support from shareholders.

Steinhoff, whose 2 300 stores sell a range of items from furniture to discount apparel, will need to revive growth at Poundland, which just embarked on a turnaround plan under new chief executive officer Kevin O’Byrne.

The 227 pence offer includes Poundland’s 2 pence full-year dividend. The target company was advised by JPMorgan Cazenove and Rothschild, while Investec acted for Steinhoff.



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