Mystery as major Purplebricks backers sell shareholdings

Two major Purplebricks shareholders have sold their stakes in the beleaguered brand, raising speculation over who they have sold to.

Regulatory filings yesterday revealed that Momentum Global Investment, which held a 7.18% stake in the online agent and was its third largest shareholder, has sold all its shares.

Inflection Point Investments, which had a 4.78% stake, has also offloaded its holdings.

It comes after Purplebricks warned it risked running out of cash earlier this week if its ongoing review and sales process isn’t resolved soon.

A stock market update last night also revealed that rival Strike has been granted a short exclusivity period to discuss a potential takeover.

The update said: “The exclusivity arrangement entered into does not include provision for a break fee or inducement fee and does not restrict Purplebricks from pursuing an offer for the company. 

The business and assets sale, if it is concluded, would be subject to approval by Purplebricks shareholders at a general meeting. 

Should it be concluded, Purplebricks said its intention would be to return the net cash proceeds to shareholders, with such return likely to be at a level below the current share price. 

There can be no certainty that the sale will be concluded, nor as to the terms of such a transaction, the update said.

It is unclear if these share sales are related but anyone taking a large stake would need to disclose it to the markets once they open.