Steinhoff ups Poundland bid

Following recent speculation that US hedge fund Elliott was to push Steinhoff to increase its bid for Poundland, Steinhoff has revised its offer for the UK discount retailer.

The new, improved offer values Poundland at c. £610.4m, compared to the initial agreement of £597m which was agreed in July.

Elliott owns 17.5% of Poundland’s shares and is known for being an ‘activist investor’, capable of extracting higher prices from bidders during takeovers. It is unclear if Steinhoff’s decision to increase the offer was to ward off further activity, or as a result of direct pressure from Elliott.

The revised offer entitles Poundland shareholders to 227p in cash for each share held, comprised of a 225p-per-share offer and a final dividend of 2p per share. This compares with the previous offer of 220p per share plus the same 2p dividend.

Steinhoff stated that the offer is final and was increased to “bring certainty to the transaction".

Steinhoff CEO Markus Jooste said:

"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."

See our previous coverage of the Steinhoff-Poundland deal here:

Steinhoff acquires Poundland for £587m

Steinhoff 'considering position' on Poundland takeover plan 

Steinhoff increases Poundland stake to 23% 

Steinhoff expresses interest in Poundland 

Image: Barry Barnes / Shutterstock

Source : Insight DIY

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