(Alliance News) - Purplebricks Group PLC shares plunged on Wednesday, after it said it has sold its business to rival Strike Ltd for the token sum of just GBP1.
Shares in the Solihull, England-based online real estate agent were down 45% to 0.72 pence each in London on Wednesday around midday.
Purplebricks said it recommends to its shareholders a proposed sale of its trading business and assets to Strike for GBP1, with Strike to assume most of its liabilities.
The transaction would mean the firm holds a cash balance of GBP5.5 million, and would return net cash proceeds of around GBP2 million to shareholders after certain costs.
"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," said Chair Paul Pindar.
Chief Executive Officer Helen Marston will leave the firm once the proposed sale is complete, with all other directs, save for Chief Financial Officer Dominique Highfield, to also step down once the firm's AIM listing is cancelled in due course. All other employees will be transferred to Strike, the company added.
Purplebricks has launched a strategic review to consider the options available to the company back in February. Following this, its formal sale process was launched at the start of March.
By Sophie Rose, Alliance News reporter
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