Freshfields Bruckhaus Deringer and Linklaters are advising South African retailer Steinhoff as it considers whether to make an offer for Poundland.
Steinhoff has turned to longstanding advisers Linklaters, with a team led by soon-to-be senior partner Charlie Jacobs. The potential bid comes after Steinhoff acquired 22.78 per cent of Poundland’s issued share capital, with the retailer having until mid-July to announce a firm intention to make an offer.
Poundland is being advised by Freshfields partner Oliver Lazenby. The listed company has noted the announced by Steinhoff but is advising Poundland shareholders to take no action without a firm offer being made.
The potential acquisition follows Poundland’s purchase of 99p Stores last year, on which Freshfields also advised.
Steinhoff has also made bids for retail rivals Home Retail Group and Darty but lost out on both accounts.
Background to the deal
Steinhoff has been one of the most active retailers in the market this year. However, it has also been involved in a number of three-way tussles, which have resulted in the company losing out in bids for Darty and Home Retail.
Steinhoff turned to Travers Smith for advice in its bidding war against Sainsburys for Home Retail. The South African retailer has tended to turn to Linklaters in the past, but the firm was unable to provide assistance as it was on hand for Home Retail.
Travers also won the Steinhoff mandate as its French unit Conforma battled Groupe Fnac for electrical retailer Darty. But again, the deal broke down and Steinhoff gave way.
Poundland listed on the London Stock Exchange in 2014, with Freshfields representing the company on its flotation. The IPO comprised a partial sale of funds by Warburg Pincus, which had bought the retailer in 2010. On that sale, Clifford Chance advised Poundland.