Harworth Group (LSE:HWG) shares soared more than 20% on Thursday, reaching 173.2p, after Peel Pepper (UK), an acquisition vehicle indirectly wholly-owned by Peel Holdings Group, launched a cash offer for all of it does not already control.
Peel Pepper launched a £582.88m cash offer, which is built upon Goodweather Holdings, another Peel subsidiary, already holding roughly 29.96% of Harworth's issued share capital, giving the bidder a substantial head start towards the 50% acceptance threshold.
Harworth owns and manages a portfolio of industrial, logistics and strategic land assets across Yorkshire, the Midlands and the North West, holding more than 15,000 acres with potential for over 35 million sq ft of employment space and 29,000 homes.
The offer values Harworth's entire share capital at approximately £582.88 million, at 172.5p per share.
It represents a 20.1% premium to Tuesday's closing price of 143.6p, and a 36% premium to the three-month volume-weighted average price of 126.8p.
Peel Holdings argues Harworth's listed structure has become a drag: administrative expenses rose 9.5% and net interest costs 58.2% in the year to 31 December 2025, while passing rental income fell 7% to £14.70 million. It also points to annualised total accounting returns of just 4.2% over four years and says Harworth has not raised new equity in nine years.
The bidder said the business "should pivot toward strategic land activities and selective development", arguing this model carries a lower cost base and suits private ownership. It added that it expects a "significant headcount reduction" from eliminating overlapping functions and listed-company costs, alongside an accelerated disposal programme and a strategic review to complete within roughly six months of the offer turning unconditional.
