The board of Harworth Group has recommended shareholders accept The Peel Group’s improved offer of 187p per share, which values the company at £631.7m.
Peel submitted its ‘best and final offer’ after announcing it had agreed to purchase 72,080,449 Harworth shares for 187p per share taking its shareholding in the business to circa 52.1%.
The board of Harworth said although it had confidence in the group’s “standalone strategy and future potential, the recommendation follows careful consideration of the best and final offer and engagement with Harworth shareholders”.
It added: “The Harworth board believes that the best and final offer is in the best interests of all Harworth shareholders, as it accelerates shareholder returns that could be delivered from, and removes the execution risk associated with, the strategic plan that Harworth would pursue independently.”
The offer represents a premium of 47.4% to Harworth’s three-month volume-weighted average share price. It also represents a discount of 10.4% to the group’s diluted EPRA NDV per share of 208.8p as at 30 June 2026 and compares to an average discount of 28.2% to Harworth’s diluted EPRA NDV per share over the last three years.
Earlier this month the board of Harworth rejected Peel’s improved offer of 177.5p per share, which valued the business at £600m. The board said the offer “significantly undervalues Harworth and its near- and longer-term prospects”. In August, the Harworth board rejected Peel’s initial offer of 172.5p per share, which valued the business at circa £582.88m.
