This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/poundland-steinhoff-takeover-agreed-for-579m-a7133896.html
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Poundland Steinhoff takeover agreed for £597m | |
| (about 2 hours later) | |
| Steinhoff International agreed to buy UK discount chain Poundland for £597 million, expanding its European retail business after two failed attempts. | Steinhoff International agreed to buy UK discount chain Poundland for £597 million, expanding its European retail business after two failed attempts. |
| Steinhoff offered 222 pence a share in cash, Poundland said in a statement on Wednesday. | Steinhoff offered 222 pence a share in cash, Poundland said in a statement on Wednesday. |
| That’s 13 per cent higher than Tuesday’s closing price and about 40 per cent more than on June 13, the day before the shares surged on bid speculation. Steinhoff made the offer hours before a UK Takeover Panel deadline. | That’s 13 per cent higher than Tuesday’s closing price and about 40 per cent more than on June 13, the day before the shares surged on bid speculation. Steinhoff made the offer hours before a UK Takeover Panel deadline. |
| “We believe that there is significant merit in bringing Poundland into Steinhoff’s global network,” the South African retailer’s chief executive officer Markus Jooste said. | “We believe that there is significant merit in bringing Poundland into Steinhoff’s global network,” the South African retailer’s chief executive officer Markus Jooste said. |
| “Steinhoff is developing a fast-growing, price-led retail business across the UK and the rest of Europe.” | “Steinhoff is developing a fast-growing, price-led retail business across the UK and the rest of Europe.” |
| Steinhoff is seeking to challenge the likes of Sweden’s Ikea after moving its primary share listing to Frankfurt from Johannesburg in December. | Steinhoff is seeking to challenge the likes of Sweden’s Ikea after moving its primary share listing to Frankfurt from Johannesburg in December. |
| Twice this year the company’s efforts have been thwarted, as it was outbid for both Argos owner Home Retail Group and French electronics retailer Darty. | Twice this year the company’s efforts have been thwarted, as it was outbid for both Argos owner Home Retail Group and French electronics retailer Darty. |
| Steinhoff could combine Poundland with Pep & Co, its chain of 50 UK discount clothing stores set up by former Asda CEO Andy Bond, according to retail analysts at Exane BNP Paribas. | Steinhoff could combine Poundland with Pep & Co, its chain of 50 UK discount clothing stores set up by former Asda CEO Andy Bond, according to retail analysts at Exane BNP Paribas. |
| Pep & Co plans to open as many as 15 new outlets later this year, it said in April. | Pep & Co plans to open as many as 15 new outlets later this year, it said in April. |
| For Poundland, the offer comes at a time when business is on a downward curve. | For Poundland, the offer comes at a time when business is on a downward curve. |
| Sales have been hurt by a surge in online shopping and a price war among the UK’s largest supermarket chains, while last year’s acquisition of the rival 99p Stores chain has also caused disruption. | Sales have been hurt by a surge in online shopping and a price war among the UK’s largest supermarket chains, while last year’s acquisition of the rival 99p Stores chain has also caused disruption. |
| British retail industry veteran Kevin O’Byrne became CEO on July 1. | British retail industry veteran Kevin O’Byrne became CEO on July 1. |
| Poundland rejected Steinhoff’s initial approach, since when the suitor has increased its stake to about 24 per cent. The 222 pence offer includes Poundland’s 2 pence full-year dividend. | Poundland rejected Steinhoff’s initial approach, since when the suitor has increased its stake to about 24 per cent. The 222 pence offer includes Poundland’s 2 pence full-year dividend. |
| The target company was advised by JPMorgan Cazenove and Rothschild. | The target company was advised by JPMorgan Cazenove and Rothschild. |
| © 2016 Bloomberg | © 2016 Bloomberg |