Steinhoff is poised to finally complete its £610m takeover of Poundland after shareholders in the discount retailer gave their overwhelming approval of the deal.
Nearly 98% of shareholders voted in favour of the deal at a meeting yesterday. The approval comes after a drawn-out negotiation period which saw Steinhoff increasing its offer last month amid threats that US activist hedge fund Elliott Advisors, which now owns an almost 25% stake in the retailer, would block the deal unless the bid was raised.
The deal is now scheduled to complete on 16 September, just two-and-a-half years after Poundland was floated on the London Stock Market.
Steinhoff already owns Harveys, Pep&co, and Bensons for Beds in the UK as well as France-based furniture chain Conforama. Analysts think Steinhoff will look to turn Poundland from a single-price retailer into a multi-price chain along the lines of B&M and Home Bargains.
Markus Jooste, CEO of Steinhoff, said last month: “We believe there is significant merit to both Poundland and Steinhoff in bringing Poundland into our global operations, and the Steinhoff directors and management are enthusiastic about the related opportunities that will arise.”
- If Steinhoff liberate from the single price model, this opens up the discount potential for brands.
- Time for suppliers to reassess the retail competitive landscape and anticipate the opportunities vs B&M and Home Bargains?