Peel Group Makes $583 Million Bid for Harworth Property Group
The infrastructure firm, already a significant shareholder, seeks to take the property group private.
Shares in the property group Harworth surged on Tuesday after Peel Group, an infrastructure firm controlled by billionaire John Whittaker, launched an unsolicited cash offer of £583 million to take the company private. Peel Group currently holds a nearly 30 percent stake in Harworth and aims to acquire the remaining shares to gain full control.
Peel Group stated that it believes Harworth's assets would be best managed and developed under full private ownership. The offer comes amid a period of activity in the property sector, which has seen other real estate investment trusts, such as Segro, be acquired by U.S. firm Prologis.
Following the announcement of the bid, Harworth's shares climbed 24 percent, or 34.4 pence, to 178 pence by the close of trading on Tuesday. This increase brought the company's valuation close to the price offered by Peel Group. Harworth has advised its shareholders to take no immediate action while the company's board assesses the terms of the proposed deal.