Harworth caves to Peel’s £630m takeover bid

After nearly two months of spirited back-and-forth between the two companies, the Rotherham-based developer’s board has succumbed to Peel’s persistence in becoming the majority shareholder after receiving a best and final offer.

Peel Pepper, a wholly owned Peel Holdings vehicle, will acquire more than 72m shares in Harworth at a price of 187p/share – an 8.4% increase in price compared to the 172.5p/share Peel initially offered in August.

Harworth is active across the North and Midlands, notably behind the redevelopment of Ironbridge Power Station in Shropshire, the 1.2m sq ft industrial-led Chatterley Park in Staffordshire, and the 450-acre Thoresby Vale in Nottinghamshire.

The £631.7m deal is expected to complete on 29 September, now that Harworth’s board has given it the go-ahead.

The acquisition will put the number of shares owned by Peel entities and directors at 52.1%. Peel stated that it was actively looking to acquire more shares at that same price, with a goal to secure 75% of shares and then cancel Harworth’s listing on the London Stock Exchange.

While Harworth’s board said it remained confident in the group’s strategy and potential, the group conceded that the Peel offer was in the best interest to shareholders as it accelerated the return on their investment. The board was advised by Barclays and Peel Hunt.

As for Peel, the group maintained its stance that Harworth’s future is uncertain and that it would be better off as a private company, rather than as a public one. Peel pointed out operational challenges, worsening cashflow, and lower sales volumes as examples of the increasing riskiness of investment in Harworth.

To fund the £631.7m purchase, Peel is having debt underwritten by HSBC and National Westminster Bank.

Harworth reported a revenue of £129.7m in its latest annual results and had a strategy to reduce its costs by £7.4m.

Leaning into its strengths around industrial and employment land, Harworth had also recently announced its phased departure from the residential sector.

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The group is in advanced negotiations to sell a site with potential to become a hyperscale data centre.

If that deal progresses, it will be the second such sale for Harworth – the first having been the Skelton Grange site that was sold to Microsoft for £106.6m in 2024.

Another four potential hyperscale data centre opportunities have been identified within the 15,000-acre Harworth portfolio.