South Africa's Steinhoff says Poundland board declines offer proposal

JOHANNESBURG, June 24 (Reuters) - South African furniture retailer Steinhoff International said on Friday Britain's Poundland's board had rejected a proposal about a possible cash offer.

Steinhoff bought a 23 percent stake in no-frills retailer Poundland and was considering a full cash bid, the company said on June 15, as the furniture conglomerate continues to hunt for acquisitions in Europe after listing in Frankfurt last year.

"We have since been notified that the Board of Poundland has not accepted our proposal regarding a possible cash offer for the entire issued and to be issued share capital of Poundland," Steinhoff said in a statement.

The South African group added that it had noted the British retailer's lower profit and recent drop in share price.

Shares (Berlin: DI6.BE - news) in Poundland were down more than 9 percent at 185 pence by 1146 GMT, outpacing a 4.5 percent drop in the FTSE 100 after Britain voted to exit the European Union.

"The Board of Steinhoff is considering its position and a further announcement will be made in due course," the furniture retailer said.

The South African group has lost out in two other takeovers in Europe this year. It failed to win Britain's Home Retail (Other OTC: HMRLF - news) , which owns Argos, and was unsuccessful in a bid for Darty (Other OTC: KESAF - news) in France. (Reporting by TJ Strydom; Editing by Ed Cropley)