Harworth (LSE:HWG) shares rose 4.6% to 186.2 pence after Peel Pepper (UK) Limited, a vehicle connected to Peel Holdings, increased its cash takeover proposal to 187 pence per share.
The revised proposal, which the bidder has described as its best and final offer, values Harworth at approximately £631.7 million.
Harworth’s board has unanimously recommended the revised proposal, having previously declined to recommend earlier approaches from Peel Pepper.
Revised Offer Increases to 187p Per Share
The new proposal represents an 8.4% increase from Peel Pepper’s previous offer of 172.5 pence per share.
It also represents a 30.2% premium to Harworth’s closing share price of 143.6 pence immediately before the start of the offer period.
Harworth’s directors said they had considered the certainty provided by the cash consideration alongside the execution risks associated with continuing the company’s standalone strategy before deciding to recommend the revised proposal.
Peel Pepper Secures Acquisition Financing
Peel Pepper plans to finance the proposed acquisition using its own resources together with debt facilities provided by HSBC UK Bank and NatWest.
An interim facilities agreement relating to the financing was dated on the day the revised offer was announced.
Harworth shares traded as high as 193.2 pence during the session before trading at 186.2 pence, compared with the 187 pence offer price. The company’s 52-week high stands at 195 pence.
UK Mid-Cap Market Falls
The share-price increase came after a lower session for the broader UK market.
The FTSE 100 closed the previous session 0.2% lower at 10,679.99, while the FTSE 250 declined 0.9%.
Harworth specialises in the regeneration and development of land, with activities concentrated in the North of England and the Midlands.
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