(Alliance News) - Purplebricks Group PLC on Wednesday granted Strike Ltd a short period of exclusivity in order to negotiate a possible sale of the business and assets of the company.
The Solihull, England-based online real estate agent stressed the exclusivity arrangement does not restrict it from pursuing an offer for the firm from another source, with the formal sale process which was announced on March 1 ongoing.
If the business and asset sale went ahead, Purplebricks said it intends to return the cash proceeds to shareholders but it stressed such a return is "likely to be at a level below the current share price."
In a separate statement, Strike confirmed it had no intention of making a bid for the entire share capital of Purplebricks. But it confirmed the exclusivity talks and reserved the right to make an offer as per the Takeover Code.
On Tuesday, Purplebricks said it intended to "promptly" conclude its strategic review, in a manner that will provide "more certainty" around its future ownership.
Shares in Purplebricks rose 2.7% to 1.93 pence each in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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