Poundland boss offered £2.7m to stay on in buyout

POUNDLAND chief executive Kevin O’Byrne is reportedly being offered £2.7 million worth of shares in Steinhoff if he stays on under the ownership of the South African retail group, assuming the takeover goes through.

Steinhoff has increased its offer for the West Midlands discount chain Poundland following pressure from a US hedge fund to bump up the deal.

Willenhall-based Poundland has agreed to a higher bid of 227p per share, worth £610.4 million including a 2p-a-share dividend, following moves by Elliott Management to build up a 17.5 per cent stake in the group.

Steinhoff had originally agreed a 222p-a-share deal worth £597 million last month but within days the US activist had increased its stake, reportedly with plans to bump up the deal.

Poundland and Steinhoff remain tight-lipped on Elliott Management’s involvement in the higher offer.

Shareholders in Poundland will vote on September 7 whether to accept this new bid.

Poundland’s chairman Darren Shapland said: “The 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.”

Markus Jooste, chief executive of Steinhoff, 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 also owns UK furniture firms Harveys and Bensons For Beds.