9th December 2024
UK operator of food and beverage outlets in travel locations worldwide, SSP Group, is planning an IPO of one of its travel hub concepts in India.
In a joint venture with K Hospitality Corp, SSP’s plans to IPO Travel Food Services (TFS), a leading player in the country’s fast-growing airport quick service restaurant and lounge sectors, targeted to be in the spring of 2025.
SSP said that India remains a strategically important market for the business. SSP acquired an initial stake in TFS in 2016 and currently holds 49% of it, for which it paid a net consideration of £57.9m. Prior to the Transaction, SSP expects to purchase additional shares in TFS (representing 1.01% of TFS’ issued share capital) at a value referenced to the IPO price.
Following completion, SSP expects to indirectly hold 50.01% of TFS’ issued share capital and TFS will continue to be consolidated in SSP’s reported financial results.
The Kapur Family Trust, which is the shareholding entity of K Hospitality Corp, will be the selling shareholder.
SSP chief executive Patrick Coveney said: “An IPO will set up our investment in India for the next stage of growth and will support TFS as it continues to deliver its growth strategy, while creating a structure to showcase the value of the business. It would ensure that SSP controls and consolidates TFS, in line with our strategy for the market. We believe that the market potential in India, combined with TFS’ economic model and market leadership, provides a compelling opportunity to deliver growth and returns for the group.”