Harworth Begins London Delisting as Peel’s 187p Offer Passes 75% Control

Harworth Group (LON: HWG) has started leaving the London Stock Exchange after Peel’s 187p-a-share cash takeover offer took the bidder and its concert parties to 75.35% of the shares. Harworth, a land regeneration and property developer in the North of England and Midlands, expects cancellation at 8.00am on the 12th of November.

Shares closed at 187p today, level with the offer, with no move because both announcements came after the London close, at about 5.27pm and 5.46pm. They have closed at 187p in every session since the 25th of September bar 186.6p on the 28th, up from 178p on the 24th of September.

The bidder, Peel Pepper (UK) Limited, is indirectly owned by Peel Holdings Group, Harworth’s long-standing major shareholder. Its best-and-final offer, raised from 172.5p on the 6th of August and 177.5p on the 17th of September, was unanimously backed by Harworth’s board on the 25th of September and declared unconditional on the 29th of September.

The 75.35% is made up of 71.43% already held by Peel and its concert parties, meaning those acting together with it, and 3.91% in valid acceptances as at 1pm today. Cancellation notice has now begun, and Harworth is intended to be re-registered as a private limited company.

For shareholders who have not accepted, Harworth’s announcement spelt out the cost of staying in:

The cancellation of the listing of Harworth Shares on the Official List and the cancellation of trading in Harworth Shares on the Main Market will significantly reduce the liquidity and marketability of any Harworth Shares in respect of which the Best and Final Offer has not been accepted at that time.

Harworth Group

Holdouts would own part of a Peel-controlled private company, with Peel setting strategy and dividends. Compulsory acquisition at the same price is intended only if Peel reaches 90%. Peel urged shareholders to accept as soon as possible, and they can do so until it gives at least 14 days’ notice of closing, with the final acceptance date no earlier than the 23rd of October.