Further evidence that PurpleBricks could be the subject of a takeover bid or other corporate action emerged Friday after it was revealed the site has appointed a joint corporate broker.
Property Industry Eye reports that Citigroup Global Markets has been hired to act as a joint broker with Peel Hunt, who’s already responsible for this role. This suggests PurpleBricks is either preparing for an acquisition or that the company could go to the market to raise more money.
A new broker could have been brought in to help PurpleBricks appeal to a wider range of investors.
Last week saw a succession of share sales and purchases. Joint co-founders Michael and Kenny Bruce sold their shares. Kenny Bruce remains as sales director but has no shares in the company.
German publisher Axel Springer more than doubled its shareholding to become the largest shareholder with 26.6 percent of the company. The previous largest shareholder, fund manager Neil Woodford, made three separate share sales taking his stake down from 29 percent to 19.25 percent. Woodford recieved around £30 million ($38 million U.S.) for almost 10 percent of the company.
If a shareholder reaches 30 percent it automatically triggers a mandatory takeover bid.