U.K. online estate agent Purplebricks agrees to sell business for £1

Investing.com -- Online estate agency Purplebricks Group PLC (LON:PURP) has agreed to sell its business for a nominal total of £1 ($1.2458) to rival Strike, according to a statement from the British company on Wednesday.

Shares in Purplebricks dropped by more than 41% following the announcement.

The transaction will see the firm enter into a conditional deal to transfer "substantially all" of its trading business and assets to Strike. The proposal would also result in Purplebricks' net cash balance - which it says is "up to a maximum of £5.5 million" - being distributed to shareholders after the deduction of certain costs.

The sale "is expected to deliver a small return to Purplebricks shareholders and preserves the Company's business and brand for the benefits of its consumer customers, employees, funding partners and other stakeholders," it said.

Purplebricks first launched a strategic review of the business in February in the wake of several profit warnings. It later began the process to sell the company in March.