Steinhoff International has agreed a takeover of British discounter Poundland for around 597-million.
CAPE TOWN - Steinhoff International said on Thursday that it had agreed to increase its offer for the UK’s Poundland Group by 5 pence per share.
The South African retail group said the revised cash value of 227 pence, comprising 225 pence for each share and a final dividend of 2 pence, valued Poundland at approximately £610.4-million. Steinhoff said the board of Poundland considered the revised and final terms of the offer to be “fair and reasonable”.
The new offer represents a premium of 43.4 percent to Poundland’s closing price 158.25 pence on June 13, the last trading day before Steinhoff’s interest became known. It represents a premium of 15.8 percent on the closing price on July 12, the day before the announcement of the earlier deal on July 13.
Poundland chairman Darren Shapland said: “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.”
Markus Jooste, Steinhoff chief executive, said: “By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction, recognising the strength and value of the business and its management team.
“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.”
The deal is subject to shareholder approval.