- Hedge fund manager Elliott Advisors has seized a 13.2% stake in the UK discount chain
- Steinhoff agreed a £597m deal to buy Poundland earlier this week
- Elliott began growing its stake at around 0.5p higher than the 220p offer
Steinhoff could be forced to increase its offer for Poundland after rival shareholder Elliott Advisors upped its stake to 13.2%.
Hedge fund manager Elliott Advisors seized a 13.2% stake in Poundland just hours after the Harveys and Bensons for Beds-owner agreed a £597m deal to buy the discount chain.
Elliott began growing its stake at around 0.5p higher than Steinhoff’s 220p offer, before emerging yesterday as one of Poundland’s largest shareholders.
Elliott’s increased stake could set up a potential battle to squeeze a takeover price higher than that agreed between the South African retailer and Poundland earlier this week. However, it is not high enough to block the proposed deal.
The US-based investor has a history of intervening in agreed bids to try to force a higher price, according to the Financial Times. It muscled in on a bid for London property developer Quintain and forced Lone Star to pay about £40m more than its initial offer.
Poundland shares rose 1.7% on Thursday afternoon after Elliott disclosed its stake.
Speaking to Retail Week about the aquisition earlier this week, Poundland chairman Darren Shapland said: “Poundland has been a successful independent company but it’s going to be part of something bigger with even more growth opportunities.”
As a result of the deal, if it completes, Poundland will delist from the London Stock Exchange.