'Fails to recognise': Harworth rejects increased £600m bid from Doncaster Sheffield Airport owner Peel

Peel, which is already a long-term investor in Harworth, is seeking to take over the company via a subsidiary called Peel Pepper and has argued that Harworth’s assets would be “best owned, managed and developed under its full control".

Peel lifted its cash offer for Rotherham-headquartered Harworth Group from £583m to £599.77m earlier this week, as the company said Harworth’s recently launched strategy to achieve millions in cost savings was "lacking credibility”.

Peel has also increased its existing holdings in Harworth to 30 per cent this week – triggering its bid being turned into a mandatory offer for other shares in the firm.

Harworth said on Friday morning that its board was rejecting the improved offer for the company.

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It said: “The board of Harworth has, together with its advisers, carefully considered the revised offer and remains unanimous and unequivocal in its rejection of the revised offer which, in its view, significantly undervalues Harworth and its near and longer-term prospects.”

The statement claimed the latest bid “fails to recognise the potential embedded value across Harworth’s portfolio”, including its plans for the building of data centres on existing land.

Harworth also announced that it has completed the sale of a 40-acre strategic land site in St Helens, Merseyside, to Tritax Big Box Developments which it described as “a further demonstration of Harworth’s ability to realise value from its portfolio”.

Harworth was the property division of UK Coal, named after the Nottinghamshire village where the latter organisation was based.

Now listed on the London Stock Exchange, it owns, develops and manages more than 14,000 acres of land on around 100 sites across the North and Midlands.

Peel has until October 11 to submit a final bid for the company, with shareholders voting by October 25.