South African conglomerate Steinhoff International has confirmed that it is considering its position after its cash bid for value retailer Poundland was rejected.
In a statement released on Friday, Steinhoff, which owns UK brands Harveys and Benson for Beds, said it had noted Poundland’s rejection regarding the possible cash offer for the entire issued share capital of the discount store chain.
Earlier this month Steinhoff acquired 61,212,467 ordinary shares of 1 pence each in Poundland, which represent 22.78% of Poundland’s issued share capital, as well as revealing its interest in proposing a cash offer for the whole of the group – which was backed by ratings agency specialist Moody’s.
Steinhoff – which has not disclosed the level of its proposed cash bid - has until 5pm on 13 July 2016 to make a firm bid for Poundland or walk away under takeover regulations.
However, Steinhoff released a further statement: “The board of Steinhoff notes the full-year results for the year ended-March 2016 released by Poundland, the recent movement in the share price of Poundland and the effect of the EU referendum on global markets. (As such), the board is considering its position and a further announcement will be made in due course.”
The news of Steinhoff’s interest in Poundland comes after numerous failed attempts to expand its group, losing out to Sainsbury’s in the pursuit of Argos owner Home Retail Group, while also missing out on the acquisition of French firm Darty to Fnac.
Steinhoff also lost out in acquiring French bedding group Cauval to investment group Perceva and is currently linked with a bid for Australian home and electrical retailer The Good Guys.