Key facts
- Peel Group has made a £583 million offer to acquire Harworth.
- Peel Group is majority-owned by Manchester billionaire John Whittaker.
- Peel Group cited concerns about Harworth's cash flow profile.
- Peel Group cited concerns about Harworth's capital-intensive development strategy.
- The offer represents a significant premium to Harworth's recent share price.
Peel Group, a company majority-owned by Manchester billionaire John Whittaker, has submitted a formal offer of £583 million to acquire the property developer Harworth. The bid was made public, signaling Peel Group's intent to take over the company. Peel Group stated that its decision to make the offer was influenced by concerns regarding Harworth's cash flow profile. Additionally, Peel Group expressed reservations about Harworth's capital-intensive development strategy. The offer is presented as a significant premium to Harworth's recent share price, suggesting a valuation that the target company's board may find attractive. The acquisition, if successful, would see Harworth integrated under the ownership of Peel Group, potentially altering its strategic direction and operational focus. Further details regarding the terms of the offer and the expected timeline for a response from Harworth's board are anticipated.