South African conglomerate Steinhoff International has received a potential knock in its takeover of Poundland as an investor has upped its stake within the group.
It was announced late last week that Steinhoff could have to make an increased bid to acquire Poundland after an investor, Elliott Capital Advisors LP, acquired a 13.21% stake in Poundland.
The stake acquired in Poundland by Elliott is not enough to block the agreed takeover of Poundland by Steinhoff; however, it could create a few problems for Steinhoff’s takeover. No further details were disclosed, although Steinhoff stated there was no change to the terms of the deal.
Steinhoff, which owns UK brands Harveys and Benson for Beds, reached an agreement with Poundland earlier this month on 13 July to purchase the discount retail chain for £597m.
Under the terms of the offer, Steinhoff is paying 222 pence per share for Poundland. 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.
Commenting on the confirmation of the agreement, Markus Jooste, CEO of Steinhoff, said that the board and its management team are ‘enthusiastic about the opportunities that this transaction brings’.