Poundland Makes Conditional Agreement To Buy 99p Stores

Discount retail chain Poundland Group PLC said Friday it has signed a conditional sale and purchase agreement to acquire competitor 99p Stores for an enterprise value of �55 million ($84.3 million). The deal calls for a cash consideration of �47.5 million, and for new Poundland shares to be issued with a value of �7.5 million. It covers the 251 stores and the warehouse and distribution center owned by 99p Stores. The acquisition is conditional on the approval of the Competition & Markets Authority, Poundland noted, with the process expected to take about two months to carry out. Poundland shares rose 7.5% at the open on Friday after the news.