Steinhoff lifts offer for Poundland

11th Aug 2016 08:12

(ShareCast News) - South Africa's Steinhoff International has improved its offer for London-listed discount retailer Poundland to £610.4m.Steinhoff has upped its offer by 5p per share to 227p in cash per share, made up of 225p and a 2p dividend.The revised offer represents a 43.4% premium to the closing price of Poundland on 13 June, which was the last business day before Steinhoff announced its interest in the company.Steinhoff confirmed that this was its final offer and it would not be increased.Poundland chairman Darren Shapland said: "The Poundland board is pleased to recommend SEAG's increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price and on an enhanced premium to Poundland's undisturbed share price."Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing. 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."Back in July, activist investor Elliott Advisors upped its stake in Poundland after the retailer reached an agreement with Steinhoff, which many took as a sign that it was looking to get more money out of the South African retail group.Independent retail analyst Nick Bubb said: "The 5p rise in the Steinhoff bid for Poundland is a pretty modest victory for shareholder activism."At 0930 BST, Poundland shares were down 1% to 221.81p.