Purplebricks says Strike not part of sale process after potential deal talks (updated)

Purplebricks

15/03/2023 10:18

(Adds details on Strike talks, background)
       March 15 (Reuters) - Purplebricks Group  PURP.L ,
Britain's biggest online-only estate agency, said on Wednesday
it has held talks over a possible takeover offer with Strike Ltd
but the smaller rival was not currently participating in the
formal sale process.
    Shares in Purplebricks rose more than 14% in morning trade
on the news.
    A local industry publication Estate Agent Today reported on
Wednesday, citing sources close to the talks, that Strike was
interested in combining the Purplebricks brand with its own
fee-free model, but was being stifled by the bidding process.
    Strike did not immediately respond to a Reuters request for
comment.
    A non disclosure agreement required as part of the takeover
process would prevent Strike from speaking with its investors to
back the potential deal, the report said.
    Sky News reported earlier this month that Purplebricks
founder and former Chief Executive Officer Michael Bruce had
been considering floating an offer to regain control over the
company, nearly four years after he stepped down from the role.
    Purplebricks had a turbulent 2022 as it struggled with
implementing a new operating model. It saw at least three major
management reshuffles and one of its top-10 shareholders -
Lecram Holdings - called for the removal of Paul Pindar as
chairman.


    

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Savio D'Souza and Shinjini Ganguli)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))