UK online estate agent Strike to buy rival Purplebricks (updated)

Purplebricks

17/05/2023 09:22

(Adds background on Purplebricks' previously announced review)
       May 17 (Reuters) - Purplebricks Group  PURP.L  said on
Wednesday its rival Strike Ltd would buy the British online
estate agent by assuming its liabilities and for a token
consideration of 1 pound ($1.26).
    The deal, which will effectively wipe out Purplebricks'
shareholders, sent the company's battered stock down another
28%.
    The announcement comes a week after Purplebricks said it was
negotiating a possible deal with Strike, which at the time, had
said it did not intend to make an offer.
    Purplebricks had a turbulent 2022 as it struggled with a new
operating model, had at least three major management reshuffles
and one of its top-10 shareholders - Lecram Holdings - called
for the removal of Paul Pindar as chairman.
    In February, the firm said its board had recognised that the
potential of the group may be better realised under an
"alternative ownership structure" and had decided to conduct a
strategic review.
    That review would include a formal sale process,
Purplebricks had said in March.
 
 ($1 = 0.7923 pounds)

 (Reporting by Eva Mathews in Bengaluru; Editing by Savio
D'Souza)
 ((Eva.Mathews@thomsonreuters.com;))