UK-based discount retailer Poundland has accepted an improved takeover offer from Steinhoff, a South African retailer.
Steinhoff improved its takeover offer by 5p a share to 227p, which also consists of a 2p dividend.
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Accepted by the board of Poundland, the offer takes the value of the discount retailer to around £610m.
Steinhoff will pay £466m for the 76% stake it does not own in the company.
The South African firm first revealed its interest in acquiring the discount retailer in June.
In July, Steinhoff came to an agreement for a £450m deal to secure complete control of Poundland, but activist investor Elliott Advisors began increasing its stake. It currently owns 17.5% of the UK retailer.
Steinhoff will need to secure three-quarters of votes in its favour, in addition to its own stake, to acquire Poundland.
