Steinhoff International’s takeover offer has been rejected by the Poundland board.
Steinhoff made its approach for Poundland on the 15 June after buying a 23% stake in the discount chain. In a statement issued on Friday, Steinhoff said the board of Poundland had not accepted its proposal regarding a possible cash offer for the rest of the business.
The day after Steinhoff’s approach, Poundland revealed that its pre-tax profits had plummeted 83.7% to £5.9m, impacted by integration costs related to its purchase of the 99p Stores chain last year. Steinhoff’s statement last week said it noted Poundland’s full year results, the recent movement in the retailer’s share price and the impact of the EU Referendum on global markets.
“The Board of Steinhoff is considering its position and a further announcement will be made in due course,” the South African company said.
Poundland’s share price has fallen over 10% in the last few days and analysts said Steinhoff is now likely to wait to see where the share price settles before deciding whether to make another approach.