Fund manager raises £30m in Purplebricks sell-off

Neil Woodford (Source: Woodfordfunds.com)

Neil Woodford’s investment fund has accelerated its sell-off of its stake in Purplebricks as it seeks to liquidise some of its assets.

Woodford Investment Management raised more than £30m as it reduced its stake in the Solihull-based business last week from 28.9% to 19.3%.

Woodford suspended trading in his equity income fund last Monday, preventing investors from withdrawing money. Around £560m had been pulled out in the last month before Kent County Council sought to withdraw its £263m investment.

The fund’s remaining stake in Purplebricks is worth around £65m.

Purplebricks is facing its own turning point after founder Michael Bruce stood down as chief executive last month before selling his £33m stake earlier this week.

The business had expanded into Australia and the USA but progress was slow, while its UK business – which was operationally profitable – had been forced to maintain much higher advertising costs than had been expected.

German publishing group Axel Springer, which invested heavily last year, has increased its stake in Purplebricks amid speculation it may seek to take the business private.

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