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Finance

UK's Harworth rejects top shareholder Peel's sweetened $802 million offer

Published by Global Banking & Finance Review

Posted on September 18, 2026

1 min read

· Last updated: September 18, 2026

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Harworth Rejects Peel’s Sweetened $802 Million Takeover Offer in UK Property Sector

Details and Context of the Takeover Proposal

Sept 18 (Reuters) - Harworth Group on Friday rejected a sweetened £599.77 million ($801.5 million) takeover offer from its largest shareholder, Peel Holdings, saying the bid undervalued the British land and property redevelopment company.

Background of the Takeover Offer

Here are some details and context on the proposal:

Shareholder Recommendations and Offer Details

• Harworth recommended that its shareholders decline Peel's sweetened offer of 177.5 pence per share compared to an earlier proposal of 172.5 pence, which was also rejected on similar grounds.

Timing and Market Conditions

• Harworth said the revised offer was timed to take advantage of the gap between its share price and the value of its underlying assets amid macroeconomic strains on the British real estate sector.

Peel Holdings and Regulatory Threshold

• Peel Holdings — part of British businessman John Whittaker's Peel Group — crossed the 30% takeover threshold on Thursday, triggering a mandatory offer under UK rules.

Exchange Rate Information

($1 = 0.7483 pounds)

Reporting Credits

(Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema)

Key Takeaways

  • Peel’s revised offer of 177.5 p per share (up from 172.5 p) triggered a mandatory offer after crossing the 30 % ownership threshold under UK Takeover Code Rule 9 (investegate.co.uk).
  • Harworth’s board believes the offer significantly undervalues the company—its EPRA NDV stood at about 214.8 p per share at end‑June, and the board estimates total embedded value at 297.4 p per share (investegate.co.uk).
  • Despite Peel highlighting the offer represents a 40 % premium to the 3‑month VWAP, Harworth contends macro pressures on NAV—particularly in residential—mean the bid still falls short of intrinsic value (investegate.co.uk).

References

Frequently Asked Questions

Why did Harworth reject Peel Holdings' sweetened takeover offer?
Harworth said the £599.77 million offer undervalued the company and its underlying assets, especially given current macroeconomic conditions.
What was the value of Peel Holdings’ revised proposal?
Peel Holdings offered to acquire Harworth at 177.5 pence per share, increasing their original offer of 172.5 pence.
What triggered Peel’s mandatory takeover offer for Harworth?
When Peel Holdings crossed the 30% takeover threshold, UK regulations required it to make a formal mandatory offer to remaining shareholders.
How does the current bid compare to Harworth’s asset value?
Harworth stated that Peel’s offer sought to exploit the gap between Harworth’s share price and the true value of its underlying assets.
Who owns Peel Holdings?
Peel Holdings is part of British businessman John Whittaker's Peel Group.

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