Poundland has reportedly rejected a takeover bid from Steinhoff, after the South African company revealed earlier this month it was looking to make an offer to the value retailer.
Steinhoff confirmed the rejection in a statement released earlier today: “The Board of Poundland has not accepted our proposal regarding a possible cash offer for the entire issued and to be issued share capital of Poundland.”
Steinhoff – which has other local interests like Bensons for Beds and homewares retailer Harvey’s – is now reportedly considering its position with a further announcement expected later down the track and rumours that it may return with a better offer.
Under official UK takeover rules, it has until July 13 to announce a definite intention to bid for Poundland.
Earlier this year, Steinhoff took on big four grocer Sainsbury’s in a bidding war for Argos parent company Home Retail Group. It eventually pulled and left Sainsbury’s to sign the £1.4bn deal.
The company also failed to take over French retailer Darty.
Steinhoff International is currently worth around £1.6bn while Poundland has been valued at just over £500m.
Poundland operates a total estate of around 600 stores across the UK, Ireland and Spain and is working towards opening 16 new sites a year for the next two years in the UK and Ireland.