Safestay Share Price (SSTY)

only managed to squeeze through multiple small trades.... wonder why ?

Glad thats behind us

2 March 2022
Safestay plc

("Safestay" or the "Company")



Conclusion of Strategic Review and Formal Sale Process



On 17 September 2021, the Board of Safestay plc (the "Board") announced that it had been considering options for the Company with its advisers. The Board determined to undertake a review of the Company's strategic options (the "Strategic Review"). These options included, but were not limited to, a sale of the Company under the framework of a "Formal Sale Process" in accordance with the City Code on Takeovers and Mergers (the "Takeover Code").



During the course of the Strategic Review, a number of constructive discussions were held with interested parties and several indicative proposals were received. Further discussions resulted in a non-binding conditional expression of interest being received from a bona fide third party (the "Expression of Interest") in cash at a significant premium to the current share price (the "Expression of Interest Price").



Having considered the Expression of Interest, the majority of the Board concluded that they would have recommended Shareholders accept an offer made at the Expression of Interest Price. However, following discussions with certain shareholders of the Company, whilst a number indicated that they would be prepared to commit to accepting such an offer at the Expression of Interest Price, it became clear that there was not sufficient shareholder support to satisfy the third party making an announcement of a firm intention to make an offer for the Company under Rule 2.7 of the Takeover Code (and the Board has notified the third party that their Expression of Interest has been rejected). All discussions with interested parties have now ceased and there are no ongoing discussions. As a result, the Board has decided to terminate the Formal Sale Process with immediate effect.



The Board has also decided to end the Strategic Review. The Board believes strongly in the appeal of the Safestay brand and will continue to explore all avenues of alternatives and opportunities in what remains a challenging and unclear post covid environment. In total, trading has been in line with the Board's expectations since the Company's last guidance issued on 28 September 2021.



Safestay's hostels only fully re-opened in July 2021, but the Board's belief in the brand strength is reinforced by the trading performance of the hostels post re-opening, delivering significantly more hostel revenues than 2020, and hostel EBITDA returning to a positive position in the latter months of the year before trade was impacted once again by travel restrictions and lockdowns because of the Omicron variant.



The Board believes that as travel restrictions are lifted across Euro

With Europe reopening this business should be slowly getting back on track.
I hear positive reviews on these modern hostels.
What’s happening with the weak buyout offer? Pretty speculative IMO.

Alliance News) - Safestay PLC on Friday said it will review its strategic options including a possible sale of the company, after receiving an early approach over a possible takeover.

Shares surged 21% to 24.15 pence in London at the open on Friday, giving the company a market capitalisation of GBP15.8 million.

The London-based company, which operates city centre hostels across Europe, said the strategic review would aim to maximise value for shareholders and better position itself for growth. The review will consider a sale among other options.

Safestay has received "a very early stage and highly conditional approach from a party in relation to a possible offer."

Safestay was hit hard by the pandemic, with revenue slumping 74% in 2020 and its pretax loss widening to GBP10.1 million. Since then, the firm sold its Edinburgh branch to A&O Hotels & Hostels GmbH for GBP16 million, and a leasehold site in Barcelona for EUR900,000. In addition, Safestay cut costs, renegotiated rental terms, and took part in government support schemes.

Chair Larry Lipman said: "Individual and group bookings are coming in for the winter and for 2022 and underpin our confidence of returning to pre-Covid levels of trading. We believe strongly in the appeal of the Safestay brand.

"However, we recognise that this is a natural point, as we relaunch the business post-Covid, to undertake a strategic review, in order to maximise value for all shareholders. This process will reveal whether there is additional value for shareholders compared to the upside we believe we can deliver."

Safestay has appointed PricewaterhouseCoopers as financial adviser for the strategic review and formal sale process.

Apologies.. I thought my post below was posted yesterday.. it would appear that it wasn’t.