Poundland shareholders overwhelmingly give Steinhoff green light for takeover

Francesca Washtell
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Steinhoff will no doubt be celebrating the all-clear from Poundland's shareholders (Source: Getty)

Steinhoff International's long-running takeover attempt of Poundland was given the green light today by the discount chain's shareholders, who overwhelmingly backed the deal.

At a general meeting at Poundland's head office in Willenhall in the West Midlands, 98.4 per cent of investors approved the South African retail giant's revised offer, which it hiked last month from £597m to £610m.

Steinhoff will pay 227p in cash for each Poundland share, of which 225p will be in cash and 2p in dividend.

The deal is scheduled to complete on 16 September.

The enhanced offer is a 43.3 per cent premium to Poundland's share price on 13 June, the day the company originally made its offer.

Read more: Poundland posts sales drop after surprise takeover offer from Steinhoff

Poundland’s stock closed up 1.3 per cent yesterday on the news, to 227p – matching the deal’s share price offer.

Poundland Poundland | mobile image

The buyer was forced to raise its offer after activist investor US hedge fund Elliott, which now owns an almost 25 per cent stake in Poundland, threatened to derail Steinhoff's bid unless the deal was improved.

Read more: Steinhoff increases Poundland holding despite Brexit vote

Poundland's board had given the all-clear to the previous 222p per share offer in July, saying it was a "fair and reasonable" sum.

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

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