Activist shareholder considering rival bid for Purplebricks

A rival offer could be on the cards for Purplebricks.

The online brand has revealed that it has received an indicative proposal from activist investor and shareholder Lecram Holdings to acquire the business.

Lecram, which has a 5% stake in the business and has previously tried to oust its chairman, is offering a price of 0.5p per Purplebricks share in cash, rivalling Strike’s favoured bid of taking on the company’s assets and liabilities for £1.

The update said the Purplebricks board does not “currently consider” that the proposal reflects an improvement on the proposed sale of business and assets to Strike, “particularly as regards anticipated return to shareholders and certainty for the company's other stakeholders”. 

The board said it continues to recommend the company's shareholders vote in favour of the resolutions of a Strike takeover being proposed at its general meeting to take place on 2 June 2023. 

Lecram is required to decide whether it will make an offer by 5pm on 23 June.

If it was to proceed to a formal offer, the approach would be subject to the satisfaction or waiver of a number of customary pre-conditions, including satisfactory completion of due diligence, the lapsing of the proposed sale of business and assets to Strike and the finalisation and documentation of financing for the transaction.
Lecram said in a statement: “Lecram Holdings can confirm it has made an offer for entire share capital of Purplebricks.

“We believe that the Strike transaction agreed by the board of the company is not in the best interests of shareholders and could end up with them receiving nothing. 

“Lecram has been engaged with the board of Purplebricks for nearly a year in an attempt to avert the situation that has now occurred and we believe our offer gives shareholders the certainty of cash now rather than vague promises from a discredited board of something more somewhere down the line.”

https://www.investegate.co.uk/announcement/7547552