Poundland has been acquired by South African retail conglomerate Steinhoff International for half a billion pounds.
The cut-price retailer has accepted the £597m takeover approach from the company after rejecting an earlier bid in June. Poundland boasts 750 outlets across the UK and Ireland with a new fledged presence in Spain, bolstered by its 2015 acquisition of rival the 99p Store.
Darren Shapland, chairman of Poundland, said: "The Poundland board believes that Steinhoff's all-cash offer presents Poundland shareholders with an opportunity to realise their shareholding at a certain and attractive price."
Shapland said that the group gathered an “attractive price… against a background of increasing economic uncertainty in the UK and a more challenging trading environment”.
Steinhoff chief executive, Markus Jooste, said: “Steinhoff recognises the strength and value of the Poundland management team and anticipates that they will play a key role in the ongoing growth and development of Poundland as part of the Steinhoff group.
“We look forward to welcoming Poundland employees to be part of one of Europe’s leading multi-format discount retailer.”
The deal works out at £2.22 per share for Poundland, attracting an all cash offer.