Harworth rejects raised, but "opportunistic", takeover offer from Peel

Harworth Group PLC on Friday rejected another takeover approach from Peel Pepper UK Ltd, as it said the revised offer continued to significantly undervalue the company.

The Rotherham, South Yorkshire-based property regeneration company said Wednesday's revised 177.5 pence-per-share proposal, up from 172.5p, still undervalues Harworth and its near- and longer-term prospects. The offer values all of Harworth's equity at £599.8 million.

Harworth shares were 0.6% lower at 177.40 pence each on Friday morning in London.

Peel and its concert parties have increased their stake to 30%, requiring the voluntary offer to be converted into a mandatory offer.

Harworth advised shareholders who have not accepted the bid to reject it, those who have accepted to withdraw their acceptances, and shareholders not to sell further shares to Peel.

The board described the offer as "opportunistic", arguing it seeks to "extract value" from Harworth's future growth prospects.

Harworth said it continues to make progress with its hyperscale data centre pipeline and targets exchanging a conditional contract for a second site in the fourth quarter, with completion and cash proceeds expected by the end of December 2028.

Further, it noted that it has completed the sale of a 40-acre site in St Helens, Merseyside, to Tritax Big Box Developments in line with book value.

Harworth is targetting at least £7.4 million of annualised run-rate cost savings by the end of 2028, with £1.3 million already realised and 94% of the planned savings expected to be achieved by the end of 2027.

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