(Sharecast News) - Beleaguered online estate agent Purplebricks said on Wednesday that it has agreed to be bought by rival Strike for just £1.
Under the terms of the deal, Strike will take on "substantially all" of Purplebricks' liabilities.
After the sale, Purplebricks said it expects to be left with around £2m, which will be returned to shareholders in a members' voluntary liquidation dependent on a number of factors.
Chairman Paul Pinder said: "It is the unanimous opinion of the board that the proposed sale to Strike is in the best interests of stakeholders and shareholders should vote in favour of the proposed sale. This conclusion has been informed by the strategic review in which all options, including an equity fund raise, have been considered and an extensive formal sale process, which involved inbound and outbound approaches from and to interested parties within and outside of the industry.
"I am disappointed with the financial value outcome, both as a 5% shareholder myself and for shareholders who have supported the company under my and the board's stewardship. However, there was no other proposal or offer which provided a better return for shareholders, with the same certainty of funding and speed of delivery necessary to provide the stability the company needs."
At 1015 BST, Purplebricks shares were down 43% at 0.75p.
