Steinhoff increases holding in Poundland as Brexit casts doubts over takeover bid

Billy Bambrough
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The unexpected Brexit vote last week has caused a raft of profit warnings from UK companies (Source: Getty)

South African retail conglomerate Steinhoff has upped its holding in UK discount retailer Poundland.

The increase, from 23.26 to 23.52 per cent, comes despite Bensons for Beds owner Steinhoff saying last week the UK vote to quit the European Union had caused it to rethink its recent offer for the company.

Steinhoff, a furniture and household goods company with operations across Europe, Africa and Australasia, earlier this month made an uninvited takeover offer for Poundland, sending its shares sharply higher.

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Last Friday Steinhoff also blamed a recent slowdown in sales at Poundland for its doubts over the offer and resistance from Poundland’s board.

Poundland reported a fall in sales for its last quarter, 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.

Last year, Poundland took over its rival 99p Stores in a deal worth £55m.

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Poundland opened 60 new stores this year and converted 190 99p Stores into Poundland shops.

Steinhoff has previously expressed interest in French retailer Darty and Argos owner Home Retail Group but has failed to seal the deals.

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