13th Jul 2016 06:35
LONDON (Alliance News) - Discount retailer Poundland Group PLC on Wednesday said it has reached an agreement with South African furniture retailer Steinhoff International Holdings NV for Steinhoff to buy Poundland.
Under the terms of the offer, Poundland shareholders will receive 222 pence in cash for each Poundland share, comprising 220 pence in cash per share and Poundland's final dividend of 2p per share for its financial year ended March 27.
This values Poundland at approximately GBP597 million, and represents a premium of 40% to Poundland's 158.25p closing price on June 13, which was the last business day before Steinhoff first bought Poundland shares, and a premium of 13% to Poundland's 196p closing price on Tuesday.
Steinhoff currently owns 24% of Poundland, through the acquisition of 63.5 million shares.
"The Poundland board believes that SEAG's all-cash offer presents Poundland shareholders with an opportunity to realise their shareholding at a certain and attractive price, securing earlier delivery of the Poundland Group's medium term value than could be expected from the ongoing turnaround process against a background of increasing economic uncertainty in the UK and a more challenging trading environment," Chairman Darren Shapland said in a statement.
"Steinhoff is a well-capitalised, international business with a clear and proven commitment to value retailing. They 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, our suppliers and stakeholders," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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