Steinhoff has bought almost a quarter of Poundland’s shares just hours after it revealed it was mulling a takeover bid for the value retailer.

Earlier today the South African retail group revealed that it is considering making an offer for the business, having lost out in previous attempts to acquire Argos owner Home Retail and French electricals retailer Darty.

Since this morning’s statement to the stock exchange, Steinhoff has acquired 61.2m Poundland shares, which represents 22.78% of the value retailer’s issued share capital.

Steinhoff has confirmed that, if it does table an offer for Poundland, this will be an all-cash bid.

However it did not confirm whether an official offer will be made and said “a further announcement will be made as appropriate.”

Poundland has noted Steinhoff’s possible offer for the company and has advised shareholders not to take any action at this stage.

The South African retail conglomerate placed a bid for Argos earlier this year but lost out to Sainsbury’s, which is set to snap up the business for £1.4bn

Steinhoff-owned Conforama was also trumped by Fnac in a bidding war over Darty. 

Poundland reported a sales increase of 29.5% in the 13 weeks to March 27, driven by the addition of 99p Stores to the retailer’s estate. The value retailer is due to report its preliminary results tomorrow.