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The Markets
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The Markets
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Real Estate

Purplebricks favours Strike deal despite rival bid from Lecram

Purplebricks Group PLC (AIM:PURP) has received a 12th hour bid approach from one of its top investors, Lecram Holdings, although it continues to favour an alternative approach from Strike Ltd, unveiled two weeks ago.

The embattled online estate agency said Lecram, which owns nearly 5.2% of Purplebricks and is run by activist investor Adam Smith, has tabled a bid of 0.5p per share in cash, valuing it at around £1.5mln.

Earlier this month Purplebricks signed a deal with Strike that would see it sold for a token price of £1, with the takeover effectively wiping out all Purplebricks shareholders.

But in a statement Purplebricks said: "The Board does not currently consider that the proposal reflects an improvement on the proposed sale of business and assets to Strike Limited, particularly as regards anticipated return to shareholders and certainty for the company's other stakeholders."

It continues to recommend shareholders vote in favour the resolutions being proposed at its general meeting to take place on June 2.

Shares were trading 3.7% lower at 0.64p in London on Tuesday.

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