Safestay shares dive as Infill Capital does not plan to buy company

Safestay PLC shares plunged on Tuesday afternoon as potential suitor Infill Capital Partners confirmed that it does not intend to make a takeover offer for the company.

On Friday, shares in Safestay, a London-based hostel operator, had more than doubled to 30.00 pence each after it confirmed discussions with Infill Capital.

Safestay shares plunged by 45% to 13.20 pence on Tuesday afternoon, falling near its closing price of 13.50p on Thursday.

Under UK takeover rules, Infill had until August 7 to announce a firm intention to bid or walk away.

In late June, Safestay had reported that revenue fell to £20.6 million in 2025 from £22.5 million in 2024, as challenging trading conditions across Europe weighed on performance.

Pretax loss widened to £10.1 million from £3.1 million, reflecting lower earnings alongside £6.0 million of non-cash impairment charges and a £1.4 million loss on asset disposals.

Safestay said liquidity improved and gross debt reduced to £14.1 million from £19.5 million following property sales.

While trading remains affected by the Middle East conflict, tourist levies, and cost pressures, the board had said it remained confident in Safestay's long-term growth prospects and continued to evaluate strategic options, including further disposals and sale-and-leaseback transactions.

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