EYE NEWSFLASH: Purplebricks enters formal sale process following takeover offers

| Marc da Silva

Purplebricks has now announced it will officially be opening itself up to potential takeover bids after seeing a string of interest in the company.

The announcement comes as the online estate said it had received interest from third parties.

In a statement, the company said since announcing last month that it was considering putting itself up for sale, the group has received several credible expressions of interest that the Board wish to pursue “in a coordinated fashion”, alongside engaging with a wider range of potentially interested parties, in relation to a potential acquisition of the Company or some or all of the Group’s business and assets.

The statement continues: ‘Purplebricks announces that, in order to fully explore the option of the potential sale of the Group, and to enable that process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the prospects of Purplebricks as a standalone listed company, the Strategic Review will include a “formal sale process” (as referred to in Note 2 on Rule 2.6 of the Takeover Code) (the “Formal Sale Process”).
‘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. It remains possible that, following completion of the Formal Sale Process, the Board will consider that Purplebricks and its shareholders would be best served by alternative strategic options available to the Company, including by Purplebricks remaining a listed company.

‘The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Takeover Code such that any interested party participating in the Formal Sale Process will not be required to be publicly identified as a result of this announcement and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Takeover Code for so long as it is participating in the Formal Sale Process.

‘The Board has appointed Zeus Capital Limited (“Zeus”) and PricewaterhouseCoopers LLP (“PwC”) as its financial advisers with regards to the Strategic Review, the Formal Sale Process and any offer for the Company that may be forthcoming.

‘Parties interested in submitting any expression of interest or other proposal relating to any strategic option for the Company, should contact PwC via the contact details given below.

‘It is currently expected that any party interested in submitting any form of proposal for consideration within the Formal Sale Process will, at the appropriate time, be required to enter into a non-disclosure agreement and standstill arrangement with the Group on terms satisfactory to the Board and on the same terms, in all material respects, as other interested parties before being permitted to participate in the process. The Group then intends to provide such interested parties with certain information on its business, following which interested parties shall be invited to submit their proposals to PwC and Zeus. The Company will update the market in due course regarding timings for the Formal Sale Process.

‘The Board reserves the right to alter any aspect of the process as outlined above or to terminate the process at any time and in such cases will make an announcement as appropriate. The Board also reserves the right to reject any approach or terminate discussions with any interested party at any time.

‘The company is not currently in receipt of an approach from any potential offeror at the date of this announcement. Shareholders are advised that this announcement does not represent a firm intention by any party to make an offer under Rule 2.7 of the Takeover Code and there can be no certainty that any offers will be made as a result of the Formal Sale Process, that any sale, strategic investment or other transaction will be concluded, nor as to the terms on which any offer, strategic investment or other transaction may be made.’

 

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29 Comments

  1. IheartRE
    March 1, 2023 at 07:22

    Gotta be worth at least $1AUD.

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  2. Mark
    March 1, 2023 at 07:40

    Maybe the Bruce brothers will swoop in

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    1. Scottish_Mist42
      March 1, 2023 at 09:14

      Wouldn’t rule it out…..

       

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    2. Chris Wood
      March 1, 2023 at 13:04

      …because they have such a good track record.

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  3. But seriously...
    March 1, 2023 at 07:42

    In 1994 Nationwide sold their 300 strong chain of estate agents to Hambro Countrywide for £1. Taking into account inflation etc, PB should be worth maybe £1.50 – oh, wait, they dont have a strong surveying business which they can sell as part of the deal for £12m so maybe not so attractive after all.

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  4. jeremy1960
    March 1, 2023 at 08:05

    What exactly are they selling?

    A time bomb of disgruntled sellers who have forked out £thousands on a market where properties do not sell themselves, a lettings business clearly not fit for purpose, a “sales” team jumping ship as quickly as they can and investors who have lost £millions.!

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    1. AgentBen
      March 1, 2023 at 08:35

      I wonder what lettings management book they have?

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  5. jan-byers
    March 1, 2023 at 08:44

    FGS why are people so obsessed with another company

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    1. NorthernAgent
      March 1, 2023 at 08:58

      Because it’s a sign of the times with this self professed “Industry disruptor” in serious trouble as most people predicted.

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      1. jan-byers
        March 1, 2023 at 09:00

        Yes but why the obsession

        Just run your own business

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        1. NorthernAgent
          March 1, 2023 at 09:15

          It’s hardly an obsession it’s taking an interest in the competition, if you’re not doing that then you’re being negligent to your own business.

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        2. htsnom79
          March 1, 2023 at 09:16

          And why do you not just run yours rather than being on here?

          Jan- I’m a developer don’t you know -Byers

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  6. watchdog13
    March 1, 2023 at 08:56

    Maybe because that company tried to discredit traditional estate agents. Then produced an offer that was third rate for the client and disastrous for itself.

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    1. jan-byers
      March 1, 2023 at 08:59

      It is called competition

      Run your own business

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  7. IheartRE
    March 1, 2023 at 09:04

    I love how obsessed Jan is herself… She can’t see the wood for the trees.

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    1. htsnom79
      March 1, 2023 at 09:39

      Reminiscent of a certain duck

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      1. IheartRE
        March 1, 2023 at 10:31

        Wonder how good old know it all CyberDuck is doing these days… Certainly should have shorted his PB stock after all! (He claimed to not have stock at one point, but that was a lie)

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        1. htsnom79
          March 1, 2023 at 11:31

          Who was the robin to his batman? It’s on the tip of my tongue

          What used to make me cringe was his predictable sign off DYO ( do your own research )

          What he failed to realise is that we didn’t need to do any research, we live it day to day and have done for years and years….

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          1. Chris Wood
            March 1, 2023 at 13:06

            Dom?

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            1. htsnom79
              March 1, 2023 at 13:16

              Roger that 🙂

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  8. That70sGuy
    March 1, 2023 at 09:43

    100% the Bruce brothers. Saw Michael leaving their office in Shirley last week

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    1. aSalesAgent
      March 1, 2023 at 16:40

      Who’s Shirley?

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  9. spin2009
    March 1, 2023 at 09:55

    Competition is the branch next door. Purple Bricks was never a serious disruptor of traditional estate agency just an expensive classified advert replacement for your defunct local newspaper.

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  10. NHGURU
    March 1, 2023 at 12:36

    Do you think Ms Marsden has already packed her suitcase?

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  11. Woodentop
    March 1, 2023 at 13:44

    BANG!!!!!!!

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    1. AgentBen
      March 1, 2023 at 14:35

      Not many people here will understand this, but I can only hear this in Mike Breens voice.

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  12. Chesterdraws
    March 1, 2023 at 18:04

    Will the management of PB be expected to pay their broker an ‘up front’ fee regardless of whether the sale of PB goes through successfully? Or will they end up paying commissery on the sale of ‘themselves” …..oh the sweet irony!

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  13. AcornsRNuts
    March 1, 2023 at 19:07

    I found an old jelly baby covered in fluff the other day. Would that be enough to buy their lettings book?

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    1. AgentBen
      March 2, 2023 at 09:36

      Not if its cherry, nobody likes cherry.

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