South African conglomerate Steinhoff International has upped its offer for discount retail chain Poundland Group, which has been agreed with the new bid valuing Poundland at around £610.4m.
The new offer from Steinhoff is revised from its previous bid of £597m made last month, with the terms of the new bid made final. The move responds to speculation that Steinhoff may up its bid following an investor, Elliott Capital Advisors LP, acquiring a further stake in Poundland to 17.5%.
Under the revised offer, Poundland shareholders will receive 227p in cash per share, consisting of Steinhoff’s 225p-per-share offer and a final dividend of 2p per share. Under the previous offer Steinhoff had offered 220p per share plus the 2p dividend. This represents a 5p per share increase.
Commenting on the confirmation of the agreement, Markus Jooste, CEO of Steinhoff, said: “The Board of Steinhoff is pleased to announce its increased all - cash offer for Poundland which both the boards of Steinhoff and Poundland consider to be at a highly attractive premium to the Poundland undisturbed share price.
“By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction recognising the strength and value of the business and its management team. 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.”
Darren Shapland, chairman of Poundland, 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.”
Poundland operates more than 900 stores across the UK, Ireland and Spain, whilst Steinhoff owns UK brands Bensons for Beds and Harveys.