Steinhoff International’s long-running takeover attempt of Poundland was given the green light today by the discount chain’s shareholders, who overwhelmingly backed the deal.
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Nearly 98% of votes were cast in favour of the deal at a meeting of Poundland shareholders, with 79% of shareholders voting. It failed to secure Britain’s Home Retail (HOME.L), which owns Argos, and was unsuccessful in a bid for Darty (DRTY.PA) in France.
Following very real concerns that the U.S. hedge fund Elliot Management could block the deal, after securing a 25 per cent stake in the company and forcing Steinhoff to up its bid for the company significantly. Shareholders in the latter will vote on whether to approve the deal at a meeting on Wednesday.
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”.
Overall, Steinhoff, which owns United Kingdom brands Bensons for Beds and Harveys, posted an increase of 33% in sales to €13.1bn, with operating profit also up by 32% to €1.5bn.
Elliott, a $28-billion hedge fund founded by American billionaire Paul Singer, has a track record of buying stakes in companies in play and then getting bidders to increase their offers.
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The offer price represents a premium of 43% to the Poundland share price before news of Steinhoff’s interest emerged.
