The company has rejected a cash offer from the South African retailer.

Steinhoff, which currently holds a 23% stake in Poundland, has been rejected by Poundland in a bid to buy out the remaining 77%.

The company noted Poundland’s poor results between March 2015 and April 2015, whilst Darren Shapland, Poundland chairman, described this year as “challenging”. Pre-tax profits fell by 83.7% to £5.9m, which includes the acquisition costs involved with purchasing competitor 99p Stores for £55m, and converting its new shops. The company now owns 600 stores, the vast majority of which are in the UK, and is currently worth around £500m.

Steinhoff pointed out the effect of “the recent movement in the share price of Poundland and the impact of the EU referendum on global markets”.

It is a possibility for Steinhoff to come at Poundland again with a higher offer before 13th July, when city takeover rules dictate it must give a firm offer or none at all. The much expected fall in Sterling also presents opportunities to take advantage of currency moves.