Poundland rejects Steinhoff approach

24th Jun 2016 12:03

(ShareCast News) - South-Africa based Steinhoff International said on Friday that London-listed discount retailer Poundland has rejected its proposal regarding a possible cash offer for the company."The board of Steinhoff notes the full year results for the year ended 27 March 2016 released by Poundland on 16 June 2016, the recent movement in the share price of Poundland and the impact of the EU referendum on global markets."Steinhoff, the owner of New Look and Virgin Active in the UK, said it was considering its position and a further announcement will be made in due course.Steinhoff - which was recently engaged in a bidding battle with Fnac over French electricals retailer Darty - announced earlier this month that it was considering a bid for Poundland. A day later, the SA company confirmed that it had upped its stake in Poundland to 23%.Poundland's results for the year ended 27 March revealed pre-tax profit fell 13.5% to £37.8m despite a 9.3% lift in sales to £1.21bn. At the statutory level, pre-tax profit tumbled 84% to £5.9m. At 1235 BST, Poundland shares were down 9% to 187.25p.