Steinhoff's long-running attempt to buy Poundland (at significantly more than a pound) took another twist this morning, after the South African retail conglomerate hiked its bid for the retailer discount retailer.
In a statement this morning the Bensons for Beds owner said it it will now pay 227p in cash for each Poundland share (225p per share, plus a divi of 2p), which puts the retailer's value at £610.4m, up from £597m.
The offer is presumably an attempt to combat threats by US activist investor Elliott Advisers to derail Steinhoff's bid for the company.
That's a 43.3 per cent premium to Poundland's share price on 13 June, the day the company originally made its offer. Investors were not impressed, mind - shares in the retailer fell 1.45 per cent to 220.75p in early trading today.
Steinhoff already owns a 23.52 per cent chunk of Poundland - which it increased from 23.26 per cent at the end of June.
The board of Poundland recommended the offer, with Darren Shapland, its chairman, saying it was an "opportunity to realise their shareholding at an improved price and on an enhanced premium to Poundland's undisturbed share price".
"Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing," he added.
"Steinhoff continues to share our vision for the growth and expansion of Poundland and, as such, we believe they are a suitable and appropriate partner for our colleagues, suppliers and stakeholders."
Last year Poundland bought its rival 99p Stores in a deal worth £55m.