EYE NEWSFLASH: Purplebricks Enters Formal Sale Process Following Takeover Offers

Purplebricks has now announced it will officially be opening itself up to potential takeover bids after seeing a string of interest in the company.

The announcement comes as the online estate said it had received interest from third parties.

In a statement, the company said since announcing last month that it was considering putting itself up for sale, the group has received several credible expressions of interest that the Board wish to pursue “in a coordinated fashion”, alongside engaging with a wider range of potentially interested parties, in relation to a potential acquisition of the Company or some or all of the Group’s business and assets.

The statement continues: ‘Purplebricks announces that, in order to fully explore the option of the potential sale of the Group, and to enable that process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the prospects of Purplebricks as a standalone listed company, the Strategic Review will include a “formal sale process” (as referred to in Note 2 on Rule 2.6 of the Takeover Code) (the “Formal Sale Process”).

‘The Formal Sale Process will enable the Board and its advisers to conduct an orderly process and engage more widely with potentially interested parties, with a view to maximising the outcome for Purplebricks’ shareholders. It remains possible that, following completion of the Formal Sale Process, the Board will consider that Purplebricks and its shareholders would be best served by alternative strategic options available to the Company, including by Purplebricks remaining a listed company.

‘The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Takeover Code such that any interested party participating in the Formal Sale Process will not be required to be publicly identified as a result of this announcement and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Takeover Code for so long as it is participating in the Formal Sale Process.

‘The Board has appointed Zeus Capital Limited (“Zeus”) and PricewaterhouseCoopers LLP (“PwC”) as its financial advisers with regards to the Strategic Review, the Formal Sale Process and any offer for the Company that may be forthcoming.

‘Parties interested in submitting any expression of interest or other proposal relating to any strategic option for the Company, should contact PwC via the contact details given below.

‘It is currently expected that any party interested in submitting any form of proposal for consideration within the Formal Sale Process will, at the appropriate time, be required to enter into a non-disclosure agreement and standstill arrangement with the Group on terms satisfactory to the Board and on the same terms, in all material respects, as other interested parties before being permitted to participate in the process. The Group then intends to provide such interested parties with certain information on its business, following which interested parties shall be invited to submit their proposals to PwC and Zeus. The Company will update the market in due course regarding timings for the Formal Sale Process.

‘The Board reserves the right to alter any aspect of the process as outlined above or to terminate the process at any time and in such cases will make an announcement as appropriate. The Board also reserves the right to reject any approach or terminate discussions with any interested party at any time.

‘The company is not currently in receipt of an approach from any potential offeror at the date of this announcement. Shareholders are advised that this announcement does not represent a firm intention by any party to make an offer under Rule 2.7 of the Takeover Code and there can be no certainty that any offers will be made as a result of the Formal Sale Process, that any sale, strategic investment or other transaction will be concluded, nor as to the terms on which any offer, strategic investment or other transaction may be made.’

Daily news email from EYE

Enter your email below to receive the latest news each morning direct to your inbox.