South African conglomerate Steinhoff Interternational has confirmed that it has reached an agreement to purchases discount retail chain Poundland for £597m.

Under the terms of the offer, Steinhoff is paying 222 pence per share for Poundland. This comes after Steinhoff’s earlier approach was rejected at the end of June.

However, Steinhoff, which owns UK brands Harveys and Benson for Beds, has seen its offer agreed and will see the Poundland store estate, consisting of over 900 outlets across the UK, Ireland and Spain, move into the Steinhoff group.

Steinhoff had been building a stake in the UK chain and owned 22.78% of Poundland after acquiring 61,212,467 ordinary shares of 1 pence each last month, and further pushed its share gain to 23.6% on 12 July, the day before the offer was confirmed.

Markus Jooste, CEO of Steinhoff, said: “The Board of Steinhoff and its management team are enthusiastic about the opportunities that this transaction brings: we believe that there is significant merit in bringing Poundland into Steinhoff’s global network. Steinhoff is developing a fast-growing, price-led retail business across the UK and the rest of Europe. Poundland would be a complementary fit to this growth story.

“Steinhoff recognises the strength and value of the Poundland management team and anticipates that they will play a key role in the ongoing growth and development of Poundland as part of the Steinhoff group. We look forward to welcoming Poundland employees to be part of one of Europe’s leading multi-format discount retailers.”

Darren Shapland, chairman of Poundland, added: “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.

“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.”