Shareholders in British discount retailer Poundland overwhelmingly backed a takeover by South Africa’s Steinhoff that will see them receive 610 million pounds ($815 million) after the intervention of activist investor Elliott Capital.
The proposed transaction was backed by Poundland shareholders on Wednesday at both a court meeting and a general meeting at the retailer’s head office in Willenhall, central England.
Of votes cast at the general meeting, 98.4 percent approved the deal.
Last month Steinhoff raised its agreed offer for Poundland to 610 million pounds from 597 million pounds after U.S. hedge fund Elliott raised its stake in the UK company.
Ahead of the vote Elliott held almost 25 percent.
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.
The transaction, which is scheduled to complete on Sept. 16, means it is third time lucky for Steinhoff. It failed to secure Britain’s Home Retail, which owns Argos and was unsuccessful in a bid for Darty in France.
For Poundland, which as its name suggests sells every item in its UK stores for a pound, the deal will end its two-year stint as a publicly listed company.
It floated at 300 pence in 2014 but its shares have lost 34 percent of their value over the last year, hit by weak sales and the distraction of integrating the 99p Stores chain it bought for 55 million pounds.
The stock was up 1.2 percent at 226.9 pence at 1334 GMT. Steinhoff’s offer is worth 227 pence.
Jim McCarthy, who stepped down in July after 10 years as Poundland chief executive, will receive a 22 million pound payment for his stake. ($1 = 0.7481 pounds) (Reporting by James Davey; editing by Sarah Young and Susan Thomas).
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Source: Reuters.com
