Reuters
Published May 26, 2023 17:07
Updated May 26, 2023 17:21
(Reuters) -British online estate agent Purplebricks Group Plc said on Friday it had received an indicative takeover proposal from one of its top shareholders Lecram Holdings.
Lecram has proposed 0.5 pence per Purplebricks share in cash, valuing the company at 153.4 million pounds ($193.61 million).
The Board does not “currently consider” that the bid shows any substantial improvement from its proposed sale to smaller rival, Strike Ltd last week.
On May 17, Purplebricks, once valued at more than $1 billion, had agreed to be bought by Strike for just one pound.
Purplebricks said Lecram’s offer does not reflect improvement with regards to “anticipated return to shareholders and certainty for the Company’s other stakeholders.”
The AIM-listed company, which has said it had liabilities of about 33 million pounds as of Oct. 31, had said it expected net cash proceeds of about 2 million pounds ($2.52 million) from the sale to Strike.
Purplebricks underwent at least three major management shake-ups in 2022 as Britain’s property sector cooled, with higher borrowing costs and lower mortgage approvals hitting demand.
Stock closed 39.20% higher on Friday at 0.66 pence.
($1 = 0.7923 pounds)
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Written By: Reuters
