Purplebricks will get new takeover supply after agreeing to £1 Strike sale
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nline property agent Purplebricks has obtained a takeover supply from its main shareholder, per week after saying it had agreed to promote its enterprise and property for £1 to on-line rival Strike.
The troubled property agency mentioned the brand new proposal got here from investor Lecram Holdings, which has beforehand criticised the group’s management.
The supply is to amass your complete issued, and to be issued, share capital of Purplebricks at a value of simply 0.5p per share.
But the agency mentioned it doesn’t suggest Lecram’s supply to shareholders.
“The board does not currently consider that the proposal reflects an improvement on the proposed sale of business and assets to Strike,” Purplebricks mentioned.
Strike, a rival on-line property agent backed by Carphone Warehouse and TalkTalk founder Sir Charles Dunstone, pulled out of bidding for the entire share capital of the agency.
It as an alternative provided a nominal £1 for its enterprise and property, together with workers, however with plans to launch a redundancy programme which is predicted to affect subject brokers and central help groups at Purplebricks.
There was no indication on what number of roles might go.
We consider our supply provides shareholders the understanding of money now, quite than obscure guarantees from a discredited board of one thing extra someplace down the road
Purplebricks share value has collapsed over the previous yr, dropping practically 95% of its worth. In the center of 2022 one share was value practically 20p. It is now value lower than 1p.
Lecram, which owns a greater than 5% stake within the beleaguered agency, has criticised its management earlier than for being “overly optimistic” in its prospects and never appearing fast sufficient to make enhancements and salvage worth for shareholders.
It referred to as for the removing of chairman Paul Pindar final yr, and the appointment of property business knowledgeable Harry Hill.
Lecram should make a agency supply or retract its proposal by a deadline of June 23.
Lecram mentioned it thinks Strike’s supply just isn’t in the very best pursuits of shareholders and will find yourself with them receiving “nothing”.
A spokesman added: “Lecram has been engaged with the board of Purplebricks for nearly a year in an attempt to avert the situation that has now occurred and we believe our offer gives shareholders the certainty of cash now, rather than vague promises from a discredited board of something more somewhere down the line.”