Harworth Group Rejects “Opportunistic” 172.5p Takeover Bid, Reports Mixed Half-Year Results

Harworth Group plc has published a formal response document urging shareholders to reject an unsolicited cash takeover offer from Peel Pepper (UK) Limited, a vehicle indirectly owned by Peel Holdings Group, valuing the regeneration and strategic land specialist at 172.5p per share.

The Harworth board unanimously rejected the bid, arguing it represents a 19.7% discount to the company’s EPRA net disposal value (NDV) of 214.8p per share as at 30 June 2026.

The board also pointed to additional embedded value not reflected in that NDV figure, including a hyperscale data centre pipeline worth an estimated £121 million and an industrials and logistics development pipeline worth £131 million on a discounted, post-tax basis, alongside power purchase agreement income.

Combined, the board put Harworth’s total estimated value at 297.4p per share, implying the offer undervalues the company by 42%.

Directors, advised by Barclays and Peel Hunt, said the offer was opportunistic, timed to exploit a valuation gap affecting the wider listed real estate sector, and would let the bidder capture future returns at existing shareholders’ expense.

Separately, Harworth’s half-year results showed a total accounting return of -3.7%, against 1.1% a year earlier, driven largely by residential market headwinds. EPRA NDV fell to £697.7 million from £725.0 million. The interim dividend was raised 10% to 0.592p per share.

The company confirmed plans to accelerate its shift toward a pure-play powered land and industrial and logistics specialist, exiting residential.