Strike not planning to bid for Purplebricks, shares crash

11th May 2023 09:18

(Sharecast News) - Estate agent Purplebricks tumbled again on Thursday after rival Strike said it was not planning to make an offer for the company but remains in talks about a potential purchase of the business and assets.

After the close of markets on Wednesday, Purplebricks said it had granted Strike a short period of exclusivity in order to negotiate a possible sale of the business and assets. The arrangement does not include provision for a break fee or inducement fee and does not restrict Purplebricks from pursuing an offer for the company.

The formal sale process announced at the beginning of March remains ongoing.

The business and assets sale, if concluded, would be subject to shareholder approval, Purplebricks said.

"Should the business and assets sale be concluded, Purplebricks' intention would be to return the net cash proceeds to shareholders, with such return likely to be at a level below the current share price," it said, adding that there can be no certainty that such a sale will occur, nor as to the terms.

At 0915 BST, the shares were down 29% at 1.37p.