Yahoo Finance Investors check into hostel firm Safestay on early bid approach news
Investors checked into Safestay on Friday after the hostel company said it had received a “very early stage” potential takeover approach.
The operator of 16 sites, including two in London, also said it has launched a review of the business that could lead to a sale of the seven-year-old company, with PwC advising.
The AIM-listed firm has been under pressure, amid lockdowns hammering the travel industry.
But today the shares jumped 16%, or 3,2p, to 23.22p, on shareholder hopes of formal offers coming in for Safestay. It floated at 50p per share in 2014.
Chairman Larry Lipman said occupancy levels have been improving monthly since Safestay’s properties could reopen, and bookings are coming in for winter and next year, which underpin the firm’s confidence of returning to pre-Covid levels of trading.
He added: “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.”
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