Poundland has accepted a 220p-a-share bid from South African retailer Steinhoff after reportedly rejecting an undisclosed cash offer from the company last month.
It comes after Steinhoff's last minute withdrawal from its battle with Sainsburys for Argos.

Poundland has suffered a recent downturn in sales following a difficult and length takeover of rival 99p Stores. Pre-tax profits fell 13.5% to £37.8m in the year to March 27, with bottom-line pre-tax profits plummeting 83.7% to £5.9m.

Steinhoff had reportedly built up a 23.6% stake in Poundland in the weeks leading up to its winning bid. Poundland's chairman Darren Shapland said the deal gave investors "an opportunity to realise their shareholding at a certain and attractive price."