BREAKING: Purplebricks reveals ‘credible offers’ for the business

Purplebricks has officially announced it is for sale and that the board’s ‘strategic review’ of the business revealed on 17th February has born fruit.

Under City rules this means the company is now going through a formal ‘offer period’ as it invites bids to take the company over, a move that will have to be approved by its various major shareholders.

The company has said this morning that it has already 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”.

Purplebricks says 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”.

Formal sale

“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 says.

“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.”

Although the company won’t speculate or comment on who a potential buyer could be, several acquisition and cash-rich agency groups exist within the property market including Connells, Dexters and the Lomond Group, all of whom would love to acquire Purplebricks circa 4% market share.

In an unusual move, the City’s takeover regulator has allowed any potential buyer to remain under wraps, which would normally be required within 28 days of any formal offer – giving Purplebricks more time to negotiate a deal.

Advisors

Purplebricks has also said: “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.

“The Company will update the market in due course regarding timings for the Formal Sale Process. “