Steinhoff’s bid to take over UK single-price point retailer, Poundland, for £610.4m has been successful with the majority of shareholders giving their support.
98% of investors back takeover
South African retail group Steinhoff International has received significant support from Poundland investors in its bid to take over the discounter. With 98% backing, the deal can now go ahead. US hedge fund Elliot Management, Poundland’s biggest shareholder with 25%, could have blocked the deal however they support Steinhoff’s ambitions by voting in favour.
Kevin O’Byrne to remain as CEO
Kevin O'Byrne, has been offered £2.7m in shares to stay on with the discounter of which he became CEO in July 2016. Talking about his priorities at the FY 2015/16 results, O'Byrne said that he will be focusing on the offer, efficiencies and returns. With the discounter's Q2 results set to be released in a week's time, it will be interesting to see what the impact of Steinhoff's takeover will be and if Poundland will adopt a new strategy to become more competitive in the growing UK discount channel.
Poundland takeover: Steinhoff adds to UK discount portfolio
For more information about who Steinhoff is and what the takeover means, click here.