Harworth shares rocket 20 per cent after £583m bid from Doncaster Sheffield Airport owner Peel
Shares in Rotherham-headquartered property regeneration specialist Harworth Group have risen by around 20 per cent following news of a £583m bid for the company by real estate giant and Doncaster Sheffield Airport landowner Peel.
It was announced on Thursday morning that Peel is making a cash offer to acquire the entire share capital of Harworth Group via its subsidiary Peel Pepper at what it said is a “significant premium” of 36 per cent to Harworth’s average share price for the last three months.
Following the announcement, shares in Harworth have risen by more than 19 per cent in morning trading.
Harworth Group issued a statement saying it is had not any “substantive engagement” with Peel about the offer prior to today’s announcement and it is now “reviewing” what has been put forward.
The company said: “The board has had no substantive engagement with Peel Pepper or Peel about any offer before their announcement today.
"The board is reviewing the terms of the offer with its advisers and a further announcement will be made as appropriate. In the meantime, shareholders are strongly advised to take no action.”
The offer values the entire issued and to be issued share capital of Harworth at approximately £582.88 million, Peel said in a statement.
It added: “The Peel Group is a long-term investor in Harworth, having held various ownership interests in Harworth over a number of years.
"Peel believes that Harworth's assets would be best owned, managed and developed under its full control."
Peel Group are the landowners for Doncaster Sheffield Aiport. The airport closed in 2022 when Peel Group said it was no longer viable. Peel are in talks to lease the land to Doncaster Council, so it can reopen.
The Yorkshire Post has contacted the Harworth Group for comment.
Earlier this week, Harworth said it was in ‘advanced negotiations’ for the creation of a second data centre on its land following a £106m deal with Microsoft for a site in Leeds.
The Rotherham-based company sold land at the former Skelton Grange power station in Leeds to the tech giant in 2024 for use as a data centre.
It is now revealed it has identified an unnamed second site in its portfolio which could become a data centre.
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.