Purplebricks appoints second broker suggesting corporate action is on the way

Purplebricks has appointed a joint corporate broker, suggesting that it is preparing for possible takeover action – or that it could go to the market to raise more money.

It has appointed Citigroup Global Markets as a joint broker with Peel Hunt, which continues in its current role.

The appointment comes as embattled fund manager Neil Woodford reduced his holding in Purplebricks yet again, taking it down to 19.25%. Until last week Woodford was the largest stakeholder, with almost 30% of the company.

The latest reduction, from 21.51% to 19.25%, was notified to the London stock exchange late on Friday afternoon.

The jostling for position by a number of Purplebricks stakeholders has meanwhile continued with Merian Global Investors – formerly Old Mutual – upping its stake from 14.36% to 16.6%.

Axel Springer’s holding remains at 26.6% after purchasing the Bruce brothers’ shares, making it the largest stakeholder, ahead of Woodford.

Michael and Kenny Bruce, who founded the company, now no longer have any holding, although Kenny remains with Purplebricks as sales director after global CEO Michael’s departure in the wake of a boardroom coup.

Merian and Toscafund, with 10.11%, last week both increased their holdings.

A 30% holding – to which Axel Springer is the nearest – would trigger a mandatory takeover bid.

Despite all last week’s machinations, the share price has been remarkably consistent, ending Friday 1.1% up at about 109p.

Meanwhile, Countrywide’s sudden spurt in share price growth came to something of an end at close of play on Friday, with the shares ending 4% down at 3.6p.

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23 Comments

  1. GPL

     

    Purplebricks?

     

    ……it’s like watching a Hollywood Disaster Movie being made, costing 100’s of Millions

     

    ……and no matter how much they spend it remains a total flop!

     

     

     

     

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    1. Property Ear

      Yup – like trying to resuscitate a dead duck

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  2. EAMD172

    What we all have to understand is the PB is now a very well know brand. With that comes advertising opportunities on their website which should be generating a very healthy income irrespective of property sales income. However with Australia failing and US potentially going the same way, the Worldwide Brand that they undoubtedly had an eye on is fast disappearing, thereby limiting international advertising revenue.

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  3. GPL

     

    Both High Street & Online are awash with Dead, Failed or Failing Brands

     

    Purplebricks is a company of straw, virtual straw …..despite £100’s of Millions it has a poor market share, and rightly so because it is NOT an Estate Agency.

     

    Purplebricks fails to deliver because it is NOT an Estate Agency ……IT IS AN OVERPRICED Property Lister.

     

    It’s NOT the next big thing, its already had its moment in the spotlight. It’s a Brand Name …….and eventually a Brand Name has to deliver.

     

    Purplebricks has & continues to fail to deliver, despite £100’s of Millions thrown at it?

     

    It’s measured success? …….making Millions for its founders who planted the Virtual Straw. …….then quickly harvested it when they saw the storms coming.

     

    The Joke is on the Investor & the Consumer. A very expensive Joke.

     

     

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    1. The Future Is Tech

      “Purplebricks is not an estate agency”

      Sorry, who are you kidding. They have the best valuers and negotiators from high street branhes, just because the model is different doesn’t mean they are not an estate agency

      The only thing flawed is the lack of chasing sales but they have a sales team to take calls for anyone who wants their sale chased as far as I can see

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      1. GPL

         

        The Future Is NOT Purplebricks

         

         

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    2. Michelle Lockwood

      GPL has always failed to deliver and has never had a moment in the spotlight. But at least he has his own real straw (not a virtual straw). 

      Back to bed now GPL; this is an adult  conversation

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      1. GPL

         
        “Back to Bed?” 
         
        …..not that kind of Fella Michelle.
         
        Look elsewhere for someone to play with. 
         
         

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        1. Property Pundit

          Can she not post during ‘normal’ hours?

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    3. padymagic

      well said GPL
      Prawn sandwiches and jewelry spring to mind.  

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  4. HonestJohn

    Never a truer word spoken GPL.

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    1. Michelle Lockwood

      Really Honest John? Never??
       
      Also, which word were you agreeing with? 

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      1. HonestJohn

        Every word from “both” through to “joke” Michelle, and every word in between.

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  5. Trevor Kent

    OF COURSE Purplebricks are estate agents – the Advertising Standards Agency told me so!

    I submitted the ASA my claim that PB cannot liken themselves to conventional estate agents as they are patently not. However, the ASA threw out my action and confirmed that, in their opinion, they were just the same as we high street boys in every respect! If anyone is interested I might try to locate their judgement, but I may well have binned my copy in frustration!

    Happy Monday – Big T.

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    1. Michelle Lockwood

      Poor simple Trevor Kent doesn’t know the definition of an estate agent. It doesn’t surprise me given his poor customer reviews. 
       
      Also, why go to the  ASA? Surely, if you were so sure of yourself, you would’ve asked the NAEA and TPO why they allow so many PB LPE’S to join?

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      1. GPL

         
        Trollwood
         
         

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        1. Property Pundit

          Clearly been on the sauce again.

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  6. cyber_truth

    THE PURPLEBRICKS BUSINESS IS DEAD AND MONEY CAN’T FIX THEIR PROBLEMS. HIGH TURNOVER, UNSUSTAINABLE MODEL, NO LEADERSHIP, NO TECH, BLEEDING CASH, ARE JUST FEW CHALLENGES. 

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    1. Michelle Lockwood

      Stop shouting cyber_truth and I’ll buy you a happy meal

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      1. GPL

         
        …..spread the Happiness Michelle 
         
         

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  7. Propertyeye

    Apart from having a high street office what exactly are most agents doing now in the UK? Lazy RM ZOOPLA property listers

    No plan outside of this unless anyone can tell me different, hoping the calls come in 🙂

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    1. GPL

       

      Too busy to deal with T@ssers like You

       

       

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    2. Property Pundit

      How come all the LowIQ trolls come out at night?

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