Steinhoff buys Poundland for £597m

13th Jul 2016 07:46

(ShareCast News) - South Africa's Steinhoff Holdings has reached an agreement with Poundland to buy the remaining shares in the London-listed discount retailer it does not already own for 222p per share in cash, valuing it at £597m.The offer price represents a premium of 39% to the closing price of Poundland on 13 June, which was the last day prior to the first acquisition of shares by Steinhoff Europe. The 222p includes final dividend of 2p for shareholders on the register at the close of business on 9 September.Poundland, which rejected a cash offer from Steinhoff last month, said its directors consider the terms of the offer to be fair and reasonable and intend to recommend unanimously that shareholders vote in favour of the scheme.Chairman Darren Shapland said: "The Poundland board believes that SEAG's all-cash offer presents Poundland shareholders with an opportunity to realise their shareholding at a certain and attractive price, securing earlier delivery of the Poundland Group's medium term value than could be expected from the ongoing turnaround process against a background of increasing economic uncertainty in the UK and a more challenging trading environment."Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing. They 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, our suppliers and stakeholders."Steinhoff, which owns UK furniture stores Harveys and Bensons for Beds and Conforama in France, had been chasing after electricals retailer Darty earlier in the year but lost that race to Fnac.The company had also shown interest in Argos owner Home Retail, which eventually struck a deal with Sainsbury's.At 1155 BST, Poundland shares were up 12.6% to 220.75p.