Poundland takeover price forced up by hedge funds
ACTIVIST investors look set to pocket a quick £3m after forcing South African retailer Steinhoff to increase its bid for Poundland.
Hedge fund Elliott Management snapped up a 17.5pc stake in Poundland after the first bid for 222p a share, which valued the company at £597m, was rejected.
But Steinhoff came back yesterday with an improved offer of 227p a share, worth £610.4m, including a 2p-a-share dividend. It meant the stake held by Elliott had effectively increased by £3m if the takeover goes through.
Poundland and Steinhoff remained tight-lipped on the involvement of Elliott, which is based in the US and run by 71year-old billionaire Paul Singer.
Darren Shapland, chairman of Poundland, said: ‘The Poundland board is pleased to recommend Steinhoff Europe’s increased allcash offer, which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price.’
Steinhoff said its revised offer was final.
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.’
Elliott has a track record of muscling in on takeovers, having played a part in pushing for a better offer from brewing giant Anheuser-Busch InBev for SABMiller.
It also achieved a higher offer for Quintain – the UK property group that developed Wembley Stadium – last year from US buyout firm Lone Star.
Steinhoff, which owns UK furniture firm Harveys and Bensons For Beds, has been determined to expand across Europe, having tried and failed to gatecrash two deals in recent months.
It lost out in a battle with Sainsbury’s to buy Argos owner Home Retail Group in March and was outbid for London-listed white goods retailer Darty.
It is backed by South African retail billionaire Christo Wiese.
Steinhoff has already said it has no plans to change Poundland’s head office or employment conditions for staff.