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Steinhoff expresses interest in Poundland

Poundland

South African retail conglomerate Steinhoff International Holdings NV has confirmed that it is considering making an unsolicited offer for Poundland.

Steinhoff is an integrated retailer that manufactures, sources and retails furniture, household goods and general merchandise in Africa, Australia and Europe. It operates in more than 30 countries across 40 retail brands, and has a market valuation of around £14 billion. In the last year, Steinhoff moved its primary listing from Johannesburg to the Frankfurt Stock Exchange, in a bid to fuel its European expansion plans.

In the UK, Steinhoff operates Bensons for Beds and Harveys.

UK takeover rules explain that Steinhoff now has until 5pm on the 13th July to make an offer or withdraw its interest.

Poundland has reacted by releasing a statement advising its shareholders to take no action, as there is no certainty that an offer will be made.

Earlier this year Steinhoff pulled out of the bidding for Home Retail Group at the last minute, allowing Sainsbury’s to acquire the business. Shortly afterwards Steinhoff walked away from a bid to acquire Darty, a French electronics retailer.

In recent weeks, there has also been speculation that Steinhoff has expressed an interest in buying the Masters DIY chain in Australia, which is currently owned by US DIY chain Lowe’s and Australia’s Woolworths.

Although Steinhoff is understood to be looking to expand its European business, Poundland does not seem like the ideal fit for any of its existing businesses, leading some analysts to state that the move is an opportunistic one. 

See the official Steinhoff publication here.

Image credit: Barry Barnes / Shutterstock.com 

Source : Insight DIY

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15 June 2016

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