Purplebricks major shareholder pulls plug on takeover offer

Online estate agency Purplebricks has had a takeover offer withdrawn from a major shareholder.

Activist investor Lecram Holdings offered to acquire the entire issued, and to be issued, share capital of Purplebricks at a price of just 0.5p per share, valuing the company at £153.4m on Friday (26).

Lecram, the investment vehicle of Adam Smith has now informed the board today (May 31) that it has withdrawn its proposal and at the current time does not intend to make an offer for Purplebricks.

With regard to the proposed sale of business and assets to Strike for £1, Purplebricks’ board says it continues to recommend shareholders to vote in favour of the deal at its general meeting on June 2.

It brings an end to its formal sale process and strategic review and will also see chief executive Helena Marston and the majority of the board resign once the deal completes.

The sale includes transferring Purplebricks business, assets and all of its liabilities to Strike.

It will retain up to a maximum of £5.5m of its cash reserves at deal completion and these net proceeds will be returned to Purplebricks shareholders following transaction costs.

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