Peel Pepper raises Harworth bid to 177.5p, flags worsening outlook

16th Sep 2026 07:29

(Sharecast News) - Peel Pepper lifted its cash offer for Harworth to 177.5p per share on Wednesday, a 2.9% increase on its previous bid and a 40% premium to the stock's three‑month volume-weighted average price.

The revised proposal values the land and regeneration group at about £600m, with Peel Pepper, a wholly-owned Peel Holdings business, stating the higher offer reflected what it sees as mounting operational and financial pressures at Harworth - including a 4.3% drop in EPRA net development value in six months, rising leverage, weaker cash generation, lower sales volumes and what it called an "uncertain" strategic plan.

Peel Pepper argued that net asset values face further downside from higher gilt yields, widening industrial yields and elevated interest and admin costs and also warned that Harworth's new strategy - which includes a full exit from residential land, ambitious development targets and a long‑dated data‑centre plan - lacked credibility given capital constraints and could lead to further NAV erosion.

The bidder reiterated that shareholders risk a lower share price if the offer does not proceed, noting the market has fallen 10% since its initial approach, and added that if it secures 75% of voting rights, it intends to seek a delisting, and at 90% it would move to compulsory acquisition.

As of 1000 BST, Harworth shares were down 0.56% at 175.81p.

Reporting by Iain Gilbert at Sharecast.com

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