Peel Group launches new Harworth Group approach

A real estate investor has launched a fresh bid for a commercial land regeneration firm.

Peel Group has unveiled a 177.5 pence per share move for Harworth Group.

The proposal comes after Rotherham-based Harworth Group dismissed a £583 million – 172.5 pence per share – approach, saying it “fundamentally undervalues its near and longer-term prospects”.

Peel Group says its proposal would provide stakeholders “with the certainty at completion of a highly attractive cash alternative”.

Harworth Group – whose portfolio includes the Advanced Manufacturing Park, based between Sheffield and Rotherham, which counts Rolls-Royce and McLaren as tenants – says it is “evaluating the revised offer with advisers” and will make a further announcement “as appropriate”.

Peel Group is already a long-term investor in Harworth Group, which previously revealed plans to slash costs amid efforts to save about £7.4 million a year and become a “simpler, lower cost” operation.

Bosses say about £1.3 million has already been secured through job cuts, with savings largely to come from “reductions in employee-related costs”.

Peel’s offer is led by Peel Pepper (UK) Limited, a company indirectly wholly-owned by Peel Holdings Group that is part of Peel Group.

Referring to Harworth Group’s previous response to Peel’s approach and its cost-cutting plans, a Peel spokesperson said: “Harworth’s defence document highlights, rather than addresses, the issues faced by the company. 

“It flags a new strategy lacking credibility but promising ‘long-term’ returns for shareholders. 

“Peel’s revised offer provides shareholders with the certainty at completion of a highly attractive cash alternative at a fair price and 40 per cent premium.”

Harworth Group’s industrial portfolio includes further sites across the North West, the East Midlands, Worcestershire and Yorkshire.

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