Harworth Group (LSE:HWG) announced it has unanimously rejected an unsolicited cash offer of 172.5p per share from Peel Pepper (UK), a company wholly owned indirectly by Peel Holdings Group.
The London-listed property firm focused on regenerating former industrial land for logistics, housing and data centres, said it had no substantive engagement with Peel Pepper or Peel before Tuesday's approach.
And, the board called the offer opportunistic, timed to exploit a gap between Harworth's share price and the value of its underlying assets, a dislocation it attributed largely to macroeconomic factors.
Harworth pointed to an average 8.1% total accounting return over the past five years as evidence of its ability to deliver long-term shareholder value.
The company flagged embedded value still to be realised in its 0.8GW power-enabled land bank, citing advanced negotiations on a second hyperscale data centre transaction disclosed in its 5 August half-year trading update. It also cited rising momentum across its 35 million sq ft industrial and logistics pipeline, driven by strong occupier demand.
It added that it is accelerating capital reallocation toward higher-returning opportunities in powered land and industrial growth sectors, alongside a medium-term business plan with cost reductions already approved in principle by the board.
Harworth's half-year results are scheduled for 15 September.
News Intelligence what this means for the company
Harworth's board unanimously rejected Peel Pepper's 172.5p cash offer—a 20.1% premium to Tuesday's close and 36% above the three-month VWAP—as opportunistic and undervalued. The board argues the offer exploits a gap between share price and asset value driven by macroeconomic headwinds, and points to a 0.8GW power-enabled land bank with advanced negotiations on a second hyperscale data centre deal (disclosed 5 August) and a 35 million sq ft industrial pipeline as evidence of embedded value still to be realised. Harworth is reviewing the offer terms with advisers Barclays and Peel Hunt.
- Peel Holdings Group already holds ~29.96% of Harworth; the board's rejection does not prevent a hostile escalation or a revised offer once the formal offer document is posted.
- Harworth's half-year results on 15 September may provide fresh data on asset valuations and deal momentum that could shift the negotiating dynamic or shareholder sentiment.
The rejection hinges on the board's conviction that embedded value in powered land and industrial assets will be realised faster and at higher returns than the offer implies. The credibility of that case rests on execution of the second hyperscale data centre transaction and industrial lettings momentum—both flagged as advanced but not yet closed—and will be tested by the 15 September results and any revised bid terms.
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