Stock market volatility triggered by coronavirus fears and the unrelated illness of boss Andy Bond has prompted Poundland owner Steinhoff to hold off on floating the value retailer.
Poundland parent Steinhoff is postponing a potential sale or flotation of its European business division, which comprises 2,000 stores including Poundland in the UK and Pepco and Dealz in Europe.
The retail group was expected finalise a takeover deal or IPO this year after confirming it was assessing options for the future of the group last November.
However, Steinhoff, which was seeking a valuation for its European subsidiary of over €4bn (£3.5bn), according to Bloomberg, will now postpone any plans to offload the business.
This decision has reportedly been prompted in part by volatility across the retail sector and stock market and a two-month leave of absence taken by Bond or health reasons unrelated to coronavirus.
Steinhoff’s decision to offload its European business arm followed an accountancy scandal at the South African group in 2017. The business has already sold assets including Bensons for Beds and Harveys.
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