South African conglomerate Steinhoff is going off discount retailer Poundland following the unexpected Brexit vote.
Steinhoff, owner of UK furniture firm Harveys and Bensons For Beds, blamed last night's vote for the UK to quit the European Union, as well as the recent falls in Poundland shares, for the decision.
The UK yesterday voted by 52 per cent to 48 per cent to leave the European Union, sparking chaos on global currency and equity markets.
Shares in the UK discount chain are down by over six per cent today as part of the wider post-Brexit sell off but have lost more than half their value in recent months, falling from a high of 406p in March 2015 to a low of 139p in April this year.
Resistance from Poundland’s board also contributed to the decision, according to Steinhoff.
Steinhoff now has a 23 per cent stake in Poundland and has been mulling a full takeover bid in recent weeks.
Last week Poundland announced a fall in sales, with pre-tax profits in the year to 27 March, down to £5.9m from £36.2m last year - a drop of 83.7 per cent.
|Brexit Britain: What you need to know|