Purplebricks Starts Formal Sale Process, Cites Takeover Interest

Purplebricks Group Plc said it was starting a formal sale process after receiving several expressions of interest that the board wished to pursue.

(Bloomberg) — Purplebricks Group Plc said it was starting a formal sale process after receiving several expressions of interest that the board wished to pursue.

The UK estate agent is exploring a sale of the group or some of its assets, Purplebricks said in a statement Wednesday. It’s still possible that after the review the board will decide on other options which include the property broker remaining as a listed company, the Solihull, England-based company added.

“The formal sale process will enable the board and its advisers to conduct an orderly process and engage more widely with potentially interested parties, with a view to maximising the outcome for Purplebricks’ shareholders,” the company said in the statement. It is not yet in receipt of any formal offer, it added.

Purplebricks has seen its market capitalization shrink to less than £25 million from a peak of £1.4 billion in 2016. It started a review last month after undertaking a turnaround plan that cost more than expected. 

The board has appointed Zeus Capital and PricewaterhouseCoopers LLP as its financial advisers, according to the statement.

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