Poundland rejects proposal for a takeover

STEINHOFF, the South African company considering a takeover of Poundland, has said the board of the Willenhall company has rejected its proposal.

The company, which already owns the Harveys furniture group and Bensons for Beds, last week acquired a 23% stake in the retailer for £125m.

It has now told the stock market that Poundland’s board “has not accepted our proposal regarding a possible cash offer”.

It added that it “notes” Poundland’s full-year results, which showed like-for-like sales and profits were down, as well as the impact of the EU referendum and the movements in its share price.

Poundland’s shares were trading below 160p before Steinhoff’s interest became known, which resulted in it jumping above 200p. However the retailer has been among those stocks affected by the Brexit vote, and at 12pm was trading down 12% at 180p.

Steinhoff said it was “considering its position” and would make an announcment in due course.