Safestay responds to speculation over £40.9m take-private deal

Hostel operator Safestay has confirmed it is in “ongoing discussions” with a European real estate investment firm over a possible £40.9m take-private deal.

In a notice to the London Stock Exchange, Safestay’s board of directors stated they had provided Infill Capital Partners (ICP) with access to “limited due diligence materials”.

Safestay pointed out “no firm offer has been made” and that “there can be no certainty that any offer for Safestay will be made, nor as to the terms of any such offer”.

The company added a further announcement “will be made as appropriate”.

It comes after Safestay completed the sale of its freehold property and hostel at Glasgow Charing Cross to an independent third-party investor for £5.1m last month.

In May, the hostel business also entered a strategic marketing partnership with Zostel, India’s largest hostel network, in a bid to expand Safestay’s international reach.

Safestay operates 20 hostels across Europe in countries such as the UK, Spain, Belgium, Czech Republic, Greece and Italy.

It was admitted on the London Stock Exchange’s AIM market in May 2014.