Purplebricks Group PLC (AIM:PURP) has announced that Lecram Holdings Ltd has withdrawn its bid proposal and does not intend to make a move for the online estate agency.
The company revealed the 12th hour bid approach from Lecram, one of its top investors, at the end of last week although it said it continued 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, had tabled a bid of 0.5p per share in cash, valuing it at around £1.5mln.
But today in a statement the company said: "Lecram have informed the Board that they have withdrawn their Proposal and at the current time do not intend to make an offer for Purplebricks."
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.
Purplebricks said today it continues to recommend the Strike deal which will be put to a shareholder vote on June 2.
Shares tumbled 21% to 0.50p.