31st May 2023 11:19
(Alliance News) - Purplebricks Group PLC shares dropped on Wednesday, after Lecram Holdings Ltd withdrew its offer for the online estate agent.
Solihull, England-based Purplebricks shares were down 21% to 0.50 pence each in London on Wednesday morning.
Real estate company Lecram said it has withdrawn its offer for Purplebricks and it no longer intends to make an offer for Purplebricks.
On Friday, Purplebricks had said an indicative takeover proposal by Lecram of 0.5p per share was not better than a potential offer it had received from estate agency Strike Ltd.
Earlier in May, Strike offered a total of GBP1, with Strike to assume most of its liabilities. The transaction would mean the firm holds a cash balance of GBP5.5 million, and would return net cash proceeds of around GBP2 million to shareholders after certain costs.
Purplebricks continues to recommend shareholders vote in favour of the potential takeover by Strike at its general meeting Friday.
Purplebricks launched a strategic review to consider the options available to the company back in February. Following this, its formal sale process was launched at the start of March.
By Sophie Rose; Alliance News reporter
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