Peel Pepper (UK), the bid vehicle indirectly wholly-owned by Peel Holdings Group, raised its cash offer for Harworth Group (LSE:HWG) to 177.5p per share.
The land and property regeneration company had rejected BidCo's original approach, publishing a defence document on 9 September that BidCo now says only confirms the challenges it faces.
The revised offer values Harworth's entire issued and to be issued share capital at approximately £599.77 million, a 40% premium to the three-month volume-weighted average price before the offer period began, and a 2.9% increase on the original cash offer announced on 6 August.
BidCo argues Harworth's net asset value fell 4.3% over six months to 208.8p diluted EPRA NDV per share, and that rising debt, weaker sales volumes and a capital-constrained balance sheet undermine the target's new strategy, including its data centre plans and residential land exit.
It also points out the FTSE EPRA Nareit UK index has declined 10% since its firm offer was announced on 6 August.
News Intelligence what this means for the company
Peel Pepper raised its hostile bid for Harworth to 177.5p per share—a 2.9% increase from its August offer—and will fund it entirely from cash. The move comes after Harworth's board rejected the original bid and published a defence document; BidCo now argues that document itself confirms deteriorating fundamentals: net asset value fell 4.3% over six months, debt is rising, and the company faces a capital-constrained balance sheet that undermines its new strategy around data centres and residential land.
The revised offer values Harworth at £599.77 million, a 40% premium to the pre-bid three-month average but still pitched by the bidder as a discount to the company's own stated EPRA net disposal value of 208.8p diluted per share (down from 214.8p at 30 June). Shareholders face a choice between accepting a cash exit now or betting that Harworth's strategic pivot—including cost savings and portfolio repositioning—will unlock value above the bid price in a sector (FTSE EPRA Nareit UK) down 10% since the offer began.
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