x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Purplebricks share price rises on news of big new German investment

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. 

  • icon

    We thought those Germans were smart. Averaging down on a dead business is never a good investment.

    icon

    Agreed

     
  • Paul Barrett

    With even the accepted profitable and proven normal High St EA going bust; witness Countrywide etc, why would anyone invest millions into a still failing business model that is PB.
    Have these Germans taken leave of their senses!!??
    The EA/LA is shrinking and there is still far more to come.
    The TFA will significantly affect many LA.
    Property sales are stagnant due to affordability issues.
    These circumstances will not change for many years.
    It is inevitable that there will be a consolidation in the EA/LA industry.
    Far fewer players are required for the crumbs that are available.
    The ability to charge fees etc is being stripped away severely compromising viability.
    Many LL/EA are going to have to become creative if they expect to survive.
    Adapt or die!!

  • icon

    Property sales will not increase significantly in the UK until the housing taxes (SDLT) are reduced. Boris Johnson our local MP, said to me recently, " stamp duty, the one thing that George got wrong" . The US operation was never going to work. So knock that on the head and keep spending the investors money on that massive advertising campaign in the UK and keep PT going a bit longer. No commisery upfront there ha ha ha ha.

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up