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SSP Group PLC on Tuesday announced the initial public offering in India of its joint-venture Travel Food Services Ltd. SSP Group is an operator of food outlets at travel locations including Upper Crust. It owns a 49% interest in TFS, which it operates as a joint venture alongside K Hospitality Corp. In 2016, SSP acquired its stake in the airport quick service restaurant and lounge operator for £57.9 million. The Kapur Family Trust, the shareholding entity of K Hospitality Corp, will be the selling shareholder in the IPO. SSP Chief Executive Officer Patrick Coveney commented: ‘India is an attractive and strategically important market for SSP, aligned to our prioritisation of high growth geographies with the greatest long-term returns opportunities. Since 2016, through our joint venture partnership with K Hospitality Corp for Travel Food Services we have built a successful Indian platform. ‘An IPO will set up our investment in India for the next stage of growth. An IPO will support TFS as it continues to deliver its growth strategy whilst creating a structure to showcase the value of the business. The planned IPO 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.’ SSP said a Draft Red Herring Prospectus, the first public document in the Indian listing process, has been filed with the Bombay Stock Exchange. It expects pricing and completion of the IPO in Spring 2025. Prior to the offering, SSP plans to purchase an additional 1.01% interest in TFS at a value referenced to the IPO price. Following the purchase, SPP will hold a 50.01% stake in TFS. The company will host a conference call on Wednesday at 08.00 GMT to discuss the planned offering. SSP Group shares closed down 0.2% at 186.82 pence each on Tuesday in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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