UK's Harworth rejects Peel Holdings' $787 million bid on valuation grounds
UK's Harworth rejects Peel Holdings' $787 million bid on valuation grounds Aug 7 (Reuters) - Harworth Group HWG.L on Friday rejected a takeover proposal from its largest shareholder, Peel Holdings, saying the bid fundamentally undervalued the British land and property regeneration company.
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The board said the bid, which values the London-listed developer at about £582.9 million ($787.15 million), opportunistically targets the gap between its share price and asset value.
Shares in Harworth were up 1.1% at 180p by 14:14 GMT, taking gains to 25% since the bid was disclosed on Thursday.
Peel Holdings — part of British businessman John Whittaker's Peel Group, which holds a nearly 30% stake in Harworth — offered 172.5 pence in cash per share for the portion it does not already own.
South Yorkshire-based Harworth said it remains confident in its ability to deliver "attractive" long-term returns for shareholders.
The company also said it is focusing its investments on higher-return land and industrial projects, and has already approved in principle plans to cut costs over the medium term.
($1 = 0.7405 pounds)
(Reporting by Tuhina in Bengaluru; Editing by Vijay Kishore)