Poundland has rejected a takeover offer from Steinhoff, dealing a potential blow to the South African retailer’s expansion ambitions.

Steinhoff, which revealed earlier this month it was eyeing a bid for the value retailer, said in a statement today: “The Board of Poundland has not accepted our proposal regarding a possible cash offer for the entire issued and to be issued share capital of Poundland.”

The retailer, whose UK interests include Bensons for Beds, said it is considering its position and a further announcement will be made in due course.

Steinhoff has already failed in two other takeover bids this year after it lost out on acquiring Argos owner Home Retail Group and French electricals retailer Darty. 

However, one analyst suggested Steinhoff will return with a better offer for Poundland.

David Stoddart of Edison Investment Research said: “Steinhoff’s statement gives it the option to come back with a higher offer for Poundland.

“This will hinge on how they are funding the transaction – if the finance is in sterling, nothing changes but, if not, following today’s sharp fall in the pound Steinhoff will enjoy greater room for manoeuvre and we would not be surprised to see it return with a more attractive offer, the cost of which may be mitigated by currency moves.”

Poundland declined to comment.