Poundland shares have jumped after Bensons for Beds owner Steinhoff made a surprise takeover offer
Poundland shares jumped more than seven per cent this morning after South African giant Steinhoff made an uninvited takeover offer.
Shares in the discount retailer hit 210.20p in early trading, after the Bensons for Beds and Harveys owner confirmed it was considering a possible offer for Poundland. It added the announcement had been made "without the consent of Poundland".
However, shares later settled around 204p, 4.1 per cent up, after Poundland issued a statement advising shareholders to take no action.
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Poundland shares have lost more than half their value in recent months, falling from a high of 406p in March 2015 to a low of 139p in April this year.
"There can be no certainty that a firm offer will be made, nor as to the terms on which any firm offer might be made," it said in a statement.
"This announcement is being made by Poundland without the prior agreement or approval of Steinhoff."
Tomorrow the retailer is expected to announce a fall in profits, as its takeover of rival 99p Stores drags on. Analysts expect it to post underlying pre-tax profits of £37.6m, according to Reuters, down from £43.7m last year.
But results posted in April suggested Poundland was on track to meet profit expectations, despite a fall in sales.
Chief executive Jim McCarthy said 2015 had been a "transformative year" for the company.
"[We have been] strengthening further our position as Europe's biggest single-price discounter [and] have added over 300 shops to our portfolio in the UK & Ireland, in particular in the South of England, substantially increasing our geographical reach and scale."