Purplebricks share price has risen over 10 per cent - at least temporarily - on news of a major expansion of investment in the hybrid agency by Germany publishing company Axel Springer.
"Purplebricks Group plc (AIM: PURP), a world leading hybrid estate agency, has been notified that on 3 June 2019, Axel Springer SE, a person closely associated with Dr. Andreas Wiele, a Non-executive Director and PDMR of Purplebricks, purchased 43,662,417 ordinary shares of £0.01p each in the Company ("Ordinary Shares") at £1 per Ordinary Share. Following the purchase, Axel Springer SE is beneficially interested in 81,384,638 Ordinary Shares, representing approximately 26.6% of the Company's issued share capital."
This morning the Purplebricks shasre price had been languishing at around 96p; it rose to 110p on hearing of the announcement of new investment.
The digital arm of the Axel Springer publishing empire paid £125m for an 11.5 per cent stake in Purplebricks back in March 2018 - paying at that time a hefty 360p per share.
When the share price dropped to little over 300p it invested again, taking its stake up to 12.5 per cent.
The shares purchased today include those sold by founder Michael Bruce, who left the company some weeks ago as part of a dramatic reshaping of the company, including closing its Australian business.
Earlier today we reported that another major investor in Purplebricks - star fund manager Neil Woodford - indicated he would back the closure of the agency's US business, too, if it helped to improve prospects for the UK operation.