Steinhoff has raised its bid for the takeover of discount giant Poundland amid pressure from stakeholders.
In what has been a troubled takeover, Steinhoff has now raised its bid to 227p-a-share, worth £610.4 million including a 2p-a-share dividend.
This is an increase on last month‘s offer of 222p a share, worth £597 million. The South African retailer was forced to up its bid after US hedge fund Elliot Management revealed had it acquired an even larger stake of 17 per cent in the discount retailer.
Known for being a rebel investor and for pushing for change in companies, it revealed last month that is spoke for 13.2 per cent of Poundland, and in what was dubbed a “bumpitrage” upped its stakes even further in order to push for a better deal.
“The Poundland board is pleased to recommend Steinhoff Europe’s increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price,” chairman of Poundland Darren Shapland said.
Chief executive of Steinhoff Markus Jooste added: “By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction recognising the strength and value of the business and its management team.”
Steinhoff have stated this is their final offer. However, they told The Guardian back in July that they would not make alterations to their offer.
They have also stated they make no plans to change Poundland‘s head office or staff, currently employing 18,000 people across the country.
This takeover comes during a turbulent time for Poundland, having reported a 13.5 per cent sales drop, and a massive pre-tax profit crash of 83.7 per cent in the year to march 27.