Yup, that should work ok. Another little tip - to make peening the tang easier, heat the very tip of the tang to red hot on a gas stove or with a propane burner, then let cool in the air. It will anneal the metal and make it more malleable. Just be careful not to overheat the blade (it would ruin the temper). Wrapping the blade in a wet rag will do the trick.
Annealing the tang might not be necessary but it's still a good idea. Since the tang was peened once already the steel might be work hardened to the point that it won't deform under the hammer easily any more. And if you continue to hammer it cold regardless, the stresses might build up and the tang could snap. Has happened before, not a pretty sight.