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Harworth rejects Peel’s 583 million pound cash bid
Harworth told shareholders not to sign or submit any acceptance, and said it will publish its full response by 9 September after reviewing Peel’s offer document.
Harworth Group has doubled down on its rejection of Peel’s 172.5p-per-share, 583 million pound cash takeover bid, a day after Peel criticised how the company is being run, according to Bisnow. Harworth’s board said it remains unanimous and unequivocal in opposing the offer, arguing that the bid undervalues both the business and the development pipeline it has built across northern England and the Midlands. The company said it will publish its full response by 9 September after reviewing Peel’s offer document with advisers.
In its statement, Harworth advised shareholders not to sign or return any form of acceptance, including electronic acceptance, in respect of their Harworth shares. Peel, through its wholly owned subsidiary Peel Pepper, said the offer would remain open until 25 October and would be for 172.5p in cash for each Harworth share.
Peel said Harworth’s public listing and strategy have failed to generate adequate returns, pointing to an annualised total accounting return of 4% over the relevant period, alongside rising administrative and finance costs. Peel also argued Harworth’s cash flow profile is becoming less sustainable and that there is less upside in the development pipeline than Harworth believes.