The Peel Group’s revised 177.5p per share offer for Harworth Group has become a mandatory cash offer after the company increased its shareholding in Harworth to 30%.
The offer, which was submitted earlier this week, values the business at around £600m and represents a 40% premium to Harworth’s three-month volume-weighted average share price.
Last month, Peel submitted an offer of 172.5p per share, which valued Harworth at circa £582.88m. The offer was rejected by Harworth, which last week issued a ‘defence document’ in an attempt to fend off Peel’s takeover bid.
Commenting on Harworth’s defence document, a spokesperson for Peel said: “Harworth’s defence document highlights rather than addresses the issues faced by the company. It announced a further decline in NAV and cash flow, while remaining silent on the company’s short-to-medium term outlook. Instead, 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% premium.”
