Harworth Group to Delist as Peel Secures Over 75% Stake
Peel Pepper (UK) Limited has secured control of more than 75% of the shares in Harworth Group PLC (LSE:HWG), prompting plans to take the real estate business private. Combined with existing holdings, recent acceptances bring Peel and its concert parties to a total ownership of 75.35% of Harworth's issued share capital.
Crossing the 75% threshold allows Peel to initiate the cancellation of Harworth's stock listing on the London Stock Exchange. Once delisted, Harworth intends to convert into a private limited company. Investors who do not accept the cash offer risk becoming minority shareholders in an unlisted entity, where share sales may become difficult and future dividend payments are not guaranteed. Peel has already replaced Harworth's board of directors with its own nominees.
The delisting will take effect no earlier than 20 business days after the announcement. The takeover offer remains open to remaining shareholders, with at least 14 days' notice to be given before a final closing date. If Peel's total stake reaches 90% or more, the firm plans to exercise statutory rights to compulsorily buyout all remaining shares at the offer price.
Key points
- Peel Pepper and its concert parties now hold or have acceptances for 75.35% of Harworth Group PLC shares.
- Harworth will apply to cancel its stock listing and intends to re-register as a private company.
- The delisting will take effect no earlier than 20 business days following the announcement.
- If acceptances reach 90%, Peel plans to compulsorily acquire all remaining outstanding shares.
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How we writeDisclaimerQuestions and answers
Why is Harworth Group delisting from the stock exchange?
Peel Pepper secured over 75% voting control, allowing it to apply for cancellation of Harworth's listing and convert it into a private company.
What happens to Harworth shareholders who do not sell?
Shareholders who retain their shares will become minority owners in a private company, facing restricted share liquidity and uncertain future dividend payouts.
What happens if Peel reaches 90% share acceptances?
If Peel reaches 90% or higher share acceptances, it intends to exercise legal rights to compulsorily acquire the remaining Harworth shares at the offer price.