Shares in Harworth Group (LSE:HWG) jumped 19% to 170.6p on Thursday after Peel Group made a cash offer valuing the land and property company at about £583 million.
Peel is offering 172.5p a share for the shares it does not already own, a 36% premium to Harworth's volume-weighted average price over the past three months.
The bid is being made through Peel Pepper (UK), an indirect subsidiary of Peel Holdings.
Another Peel subsidiary, Goodweather Holdings, and parties acting with it already hold about 98 million shares, or 29.96% of Harworth's issued capital.
Harworth owns industrial and logistics properties and strategic land, mostly in the north of England and the Midlands, much of it former colliery sites.
Peel, a long-term investor in the company, said the assets would be best owned and developed under its full control.
The group argued that the stock market listing provided limited benefit and that the offer addressed a structural valuation discount it believes Harworth has faced for years.
It also said the company's cash flow profile was becoming less sustainable, with administrative costs and interest payments now exceeding recurring rental income.
Peel described Harworth's strategy of developing and holding sites as capital intensive and slow to deliver value.
It wants the business to shift towards strategic land and selective development, a lower-cost model it says works better in private hands.
The bidder intends to review overlapping functions including senior management, finance, human resources and compliance, which it expects to result in a significant reduction in headcount.
Harworth would leave the London market if the deal completes.
The offer lands a day after Harworth reported a strong first half, with a series of deals across the portfolio.
The company also said it had identified a second site suitable for a hyperscale data centre, following a £106.6 million land sale to Microsoft in 2024.
