Rotherham-based land developer Harworth Group said on Wednesday it is evaluating an increased takeover offer from Peel Pepper, part of Manchester-based private conglomerate Peel Group.

Peel Pepper raised its cash offer for Harworth by 2.9% to 177.5p per share from 172.5p, valuing Harworth at around £599.77 million.

Harworth had rejected a former offer last week, saying that it “fundamentally” undervalued the company.

Harworth said: “The Board of Harworth notes the announcement made by Peel Pepper (UK) Limited earlier today regarding an increase to the cash consideration payable under the terms of its firm offer for Harworth from 172.5 pence per Harworth Share to 177.5 pence per Harworth Share.

“There has been no engagement between Peel and Harworth over the course of the offer period.

“The Harworth Board is evaluating the Revised Offer with its advisers and a further announcement will be made as appropriate.”