11th Aug 2016 07:21
LONDON (Alliance News) - Poundland Group PLC on Thursday said it has agreed a revised and final cash offer from South Africa's Steinhoff International Holdings NV, which had struck a deal to buy the UK single-price discount retailer in July.
Under the revised offer, Poundland shareholders will receive 227 pence in cash for each share held, comprising 225p in cash plus the final dividend of 2p per share for Poundland's last financial year which ended on March 27.
This values Poundland at GBP610.4 million, and represents a 7p increase over the previous 220p offer in July. Shares in Poundland were trading down 1.5% at 220.75 pence on Thursday morning.
The revised price represents a premium of 43% to Poundland's closing share price of 158.3p on June 13, which was the last business day before Steinhoff acquired Poundland shares, and a 16% premium to the closing price of Poundland's shares of 196p on July 12, which was the last business day before Steinhoff made its former offer.
Poundland said it recommends that shareholders vote in favour of the revised offer.
Steinhoff is directly interested in 63.5 million Poundland shares, representing 24% of its issued share capital, and has received irrevocable undertakings to vote in favour of the offer in respect of 9.2% of Poundland shares.
"The Poundland board is pleased to recommend SEAG's increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price and on an enhanced premium to Poundland's undisturbed share price," Chairman Darren Shapland said in a statement.
"Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing. 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," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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