(Alliance News) - Purplebricks Group PLC said Wednesday it has sold its Canadian business for about GBP35 million.
The online estate agent has sold its DuProprio and Purplebricks Canada operations to Desjardins Group, a Canadian cooperative financial group, for CAD60.5 million in cash.
"The disposal of PBDP simplifies the group's operations and fits with its strategy of focusing on its core market in the UK, where there is substantial opportunity to grow its market-leading hybrid model," Purplebricks said.
Following receipt of proceeds, Purplebricks will hold a net cash balance of GBP66 million.
The Canadian unit made an adjusted operating loss of GBP2.8 million for the 10 months to April 30.
Purplebricks Chief Executive Vic Darvey said: "Over the last 14 months, Purplebricks has reset its strategy to give the company a strong foundation for the next phase of its growth.
"The company's hybrid, digitally enabled model is more relevant than ever and this simplification of the business will allow management to focus its time and the company's resources on delivering growth in the core UK market. The board wishes the teams at DuProprio and Purplebricks Canada the very best in their new venture - and I would like to thank them personally for the collaboration and mutual sharing of knowledge and expertise over the last couple of years."
Shares in Purplebricks Group closed 4.6% higher in London on Wednesday at 55.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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