A major shareholder of Purplebricks has withdrawn its representative on the troubled agency’s board to avoid a conflict of interest.

Purplebricks is currently open to takeover offers after a strategic review announced last month, and the board will consider any bids.

Now, German media giant Axel Springer, which owns a 26.5% stake in Purplebricks, has decided to step down from the board temporarily.

Its representative Ait Voncke, CEO of AVIV Group, which is the company’s online classifieds real estate offering, has resigned with immediate effect.

Axel Springer and Purplebricks issued a joint statement saying: “Following commencement of the strategic review announced by the company on 17 February 2023, Axel Springer and the company have been considering the regulatory and governance expectations around equality of information between shareholders during an offer period.

“After reviewing the position, Axel Springer has concluded that it will not maintain a board representative for the time being.  Accordingly, Ait has stood down from his position as a director of the Company with effect from 6 March 2023, for the time being.”

Rival shareholder

Voncke, who was appointed to the board in July 2022, says: “Axel Springer is fully supportive of the strategic review and formal sale process being undertaken by the Purplebricks board.

“We are confident this review and process will benefit stakeholders and support the long-term growth of the business.”

Industry expert Anthony Codling, who runs property platform Twindig, says it is a sensible move by Axel Springer to step down from the board.

“They are well-advised. They are trying to guard against any perceived conflict of interest,” he says.

If another shareholder wanted to bid for the company, it could be a problem that a rival shareholder in Axel Springer was present on the board, he explains.