The Financial Times reported Poundland’s shares jumped 23.7% to 195.8 pence on Tuesday after traders were tipped off that Investec handled a single off-market trade of 40.9-million shares at 195p apiece, a premium on the 155p it was trading at on the London Stock Exchange.
Warburg Pincus, Poundland’s 15.3% shareholder, which floated the retailer two years ago at 300p a share, was rumoured to have been the seller. But Poundland’s board was said to be in the dark as to the identity of the buyer.
The Financial Times speculated that Steinhoff or Brait would be the likely buyers. Steinhoff, which recently moved its primary listing to Frankfurt Stock Exchange after acquiring Pep Stores from Brait, has a market capitalisation of about €20bn and employs 105,000 people.
Poundland has been seen as a natural fit for retail tycoon Christo Wiese’s plans to expand Pep into the UK.
"The board of Steinhoff notes the recent share price movement in the share price of Poundland and confirms that it is considering a possible offer for the entire issued share capital of Poundland," the furniture retailer said in its statement.
"This announcement has been made without the consent of Poundland. A further announcement will be made when appropriate in due course."
Under the London Stock Exchange’s rules, Steinhoff has until 5pm on July 13 to announce a firm intention to buy out Poundland’s minority shareholders.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
