South African retail giant Steinhoff is weighing up whether to make a bid for Poundland (PLND) in the wake of Brexit.

A short statement from Steinhoff on the London Stock Exchange said Poundland had not accepted its proposal of a possible cash offer for the retail chain.

The South African company, controlled by billionaire Christo Wiese, added it was “considering its position” after the result of the EU referendum sent global markets into meltdown.

Poundland shares are down 10% so far today to 185p as consumer stocks take heavy hits on investors worries about how a downturn in the economy would affect the high street.

Steinhoff revealed itself as the mystery buyer of more than 40 million Poundland shares previously held by Warburg Pincus for 195p each on 15 June. It quickly added to its 15% stake with another 21 million shares taking its holding to 23% as well as indicating a cash offer was in the offing.

Poundland full-year results released the next day revealed that profits had plunged 84% as the group ran into problems related to the acquisition of 99p Stores and competitive conditions on the high street led to fewer customers coming through the doors.

“The board of Steinhoff notes the full year results for the year ended 27 March 2016 released by Poundland on 16 June 2016, the recent movement in the share price of Poundland and the impact of the EU Referendum on global markets,” Steinhoff said in the statement.

“The board of Steinhoff is considering its position and a further announcement will be made in due course.”

Steinhoff’s 61 million shares were worth about £119m at the price it paid, but the stake is today worth £112m.

The South African group has until 13 July to decide whether to put in an offer or walk away. If it does leave the table it will be the third time the group has missed out on a European retail target after missing out on Argos and Darty earlier this year.

David Stoddart, analyst at Edison Investment Research, said: ”Steinhoff’s statement gives it the option to come back with a higher offer for Poundland. This will hinge on how they are funding the transaction – if the finance is in sterling, nothing changes, but if not, following today’s sharp fall in the pound Steinhoff will enjoy greater room for manoeuvre and we would not be surprised to see it return with a more attractive offer, the cost of which may be mitigated by currency moves.”