UK-based discount retailer Poundland has agreed to a £597m acquisition from South African retail firm Steinhoff International.
The discount retailer has recommended this takeover deal from Steinhoff to its shareholders.
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If the shareholders approve the deal, they will receive 220p a share, in addition to the 2p a share dividend announced last month.
Steinhoff was quoted by the BBC as stating that Poundland would be a complementary fit as it intends to expand in the UK and Europe.
The discount retailer has more than 900 outlets across the UK, Ireland and Spain, and 18,000 employees.
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The retailer recently announced a drop in profits, as its annual pre-tax profits fell 83.7% to £5.9m, even as sales increased by 18.7% to £1.3bn.
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By GlobalDataCurrently holding a 23% stake in Poundland, Steinhoff operates 40 retail brands in 30 countries. Among these brands include Harveys and Bensons for Beds.
