Harworth Board Rejects Peel's Sweetened £599.77 Million Takeover Bid

Harworth Group has rejected a revised takeover proposal from its largest shareholder, Peel Holdings, stating that the sweetened offer undervalues the British land and property redevelopment company.

The board recommended that shareholders decline the bid, which values Harworth at approximately £599.77 million ($801.5 million). The revised offer of 177.5 pence per share follows an earlier proposal of 172.5 pence per share, which was also turned down on similar grounds.

According to Harworth, the timing of the revised offer appears designed to exploit the gap between its share price and the value of its underlying assets, particularly as the UK real estate sector faces macroeconomic pressures.

Peel Holdings, part of British businessman John Whittaker's Peel Group, crossed the 30% takeover threshold on Thursday. Under UK takeover rules, this triggers a mandatory offer for the company.

The rejection underscores the board's confidence in Harworth's standalone prospects amid challenging market conditions.