Poundland owner prepares for sale or float

Pepkor Europe has separated itself from struggling parent company Steinhoff and refinanced its high-interest debts, according to The Times.

It is understood Poundland’s owner has already held meetings with advisers and will find bankers next month to advise on a process to explore a stock exchange listing or a sale.

Sources told The Times the discount retailer was likely to attract interest from private equity firms.

As well as a potential float or sale, Pepkor Europe has refinanced £250m of its high-interest loans originally agreed with New York hedge fund Davidson Kempner in January last year, meaning the company was able to survive when its parent company suffered a financial crisis.

Pepkor Europe has also refinanced a loan this week at a much lower rate, arranged by JP Morgan, with parent company Steinhoff’s hedge fund creditors.

The refinancing will cut the ties between Pepkor Europe and Steinhoff, meaning that a separate sale for Harveys and Bensons for Beds – also owned by Steinhoff – could be likely.

Earlier this week Steinhoff’s new chief executive Louis du Preez told investors in Cape Town that the only hope for the company’s survival was to sell assets and become a hands-off holding company.