Poundland shareholders vote overwhelmingly in favour of £610m takeover

THE £610m takeover of Black Country-based single price retailer Poundland has moved a stage nearer after shareholders gave their overwhelming support for the deal.

At the Poundland AGM more than 98% of shareholders backed the proposal put forward by South African group Steinhoff.

The turnout for the meeting at the group’s base in Willenhall was high, with almost 82% of shareholders taking part in the vote.

Steinhoff made its initial approach to the firm in June, sensing it may be vulnerable after a slowdown in trade and the integration of its £55m 99p Stores acquisition.

The offer was rejected but the South African group persisted, although it was forced to up its bid by £13m after American hedge fund Elliott, which had steadily built up its stake in the retail group, forced the bidder’s hand.

Steinhoff received unconditional merger clearance for the move from the European Commission at the end of August.

The deal remains subject to sanction by the court at the hearing due on September 15.

Subject to the scheme being sanctioned, the deal is expected to become effective on September 16.

Linklaters are providing legal advice to Steinhoff. Freshfields Bruckhaus Deringer are providing legal advice to Poundland.