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.
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.
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.
Currently holding a 23% stake in Poundland, Steinhoff operates 40 retail brands in 30 countries. Among these brands include Harveys and Bensons for Beds.