Value retailer Poundland has agreed to a higher takeover offer of £610.4m from South African retail suitor Steinhoff.
The value retailer’s board has recommended an increased offer from Steinhoff, valuing the business at £610.4m compared with £597m tabled last month.
Steinhoff’s higher offer came after Poundland shareholder Elliott Advisors built its stake in the discount retailer last month to become one of its largest shareholders and in an effort to wring more money out of the retail giant.
Steinhoff has upped its offer by 5p to 225p per share, with a final dividend of 2p per share.
Steinhoff, which owns 40 retail brands globally including Bensons for Beds and Guess How Much? in the UK, said the latest offer is final and Poundland’s directors have agreed the terms of the revised agreement are “fair and reasonable”.
Steinhoff chief executive Markus Jooste said: “We believe there is significant merit to both Poundland and Steinhoff in bringing Poundland into our global operations, and the Steinhoff directors and management are enthusiastic about the related opportunities that will arise.”
Poundland chairman Darren Shapland said: “Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing.
“Steinhoff continues to share our vision for the growth and expansion of Poundland and, as such, we believe they are a suitable and appropriate partner for our colleagues, suppliers and stakeholders.”
Steinhoff has been considering an acquisition of Poundland since June after losing out on attempts to buy Argos in the UK and French electricals retailer Darty.