Peel Pepper raises £187-pence bid for Harworth Group, boosting valuation to £631.7m

Peel Pepper Limited has raised its bid for Harworth Group plc to 187 pence per share, valuing the property development company at approximately £631.7 million—a 30.2% premium over the last trading price of 143.6 pence on August 5, 2026. The revised offer follows Peel Pepper’s acquisition of 30% of Harworth’s voting shares, triggering mandatory acceptance under UK takeover rules. The previous bid of 172.5 pence per share, announced on August 6, 2026, had already marked an 8.4% increase from the prior offer, reflecting a growing confidence in the target’s value amid macroeconomic uncertainty and perceived share illiquidity. The latest bid represents a 10.4% discount to Harworth’s diluted EPRA net asset value of 208.8 pence per share as of June 30, 2026, despite the target’s share price having closed at or below 187 pence on 98.2% of trading days over the past five years. The Harworth board, after reversing its initial stance, now recommends acceptance, citing the opportunity to unlock cash returns in an uncertain economic environment. Advisors Barclays and Peel Hunt confirmed the offer’s fairness, with Peel Pepper financing the deal through its own resources and debt from HSBC UK Bank plc and National Westminster Bank plc. Settlement is expected by September 29, 2026, with Peel Pepper controlling around 52.1% of Harworth’s issued shares post-transaction. The interim dividend of 0.592 pence per share, announced on September 9, will not be adjusted for the offer.