LONDON - SSP Group plc, a leading operator of food and beverage outlets in travel locations, alongside its joint venture partner K Hospitality Corp, has announced the planned initial public offering (IPO) of Travel Food Services Limited (TFS) in India. The Draft Red Herring Prospectus (DRHP) for TFS's IPO has been filed with the BSE Ltd and will soon be filed with the National Stock Exchange of India Limited, marking a significant step in the company's expansion in the fast-growing Indian market.
The proposed IPO is part of SSP's strategy to capitalize on the opportunities in the Indian travel market, where TFS is cited as the leading player in the airport quick service restaurant and lounge sectors. The DRHP will be available on the Indian Stock Exchanges, the Securities and Exchange Board of India (SEBI) website, and TFS' website, providing further details on the company and the transaction.
SSP, which acquired an initial stake in TFS in 2016 and currently holds 49% of the company, plans to purchase an additional 1.01% stake prior to the IPO. This move will increase SSP's shareholding to 50.01%, thereby consolidating TFS in SSP's financial results. The Kapur Family Trust, representing K Hospitality Corp, will be the selling shareholder in the IPO.
Patrick Coveney, CEO of SSP Group, emphasized the strategic importance of the Indian market and the growth potential it offers. He stated that the IPO will support TFS in its growth strategy and showcase the value of the business. Varun Kapur, Managing Director and CEO of TFS, expressed optimism about the continued partnership with SSP as they approach this milestone.
The IPO is scheduled for Spring 2025, subject to regulatory approval and market conditions. The transaction will not result in any proceeds for TFS or SSP, as it is an offer for sale by the Kapur Family Trust. Following the IPO, TFS will operate as an independent, publicly-listed company, with SSP intending to nominate two directors to TFS's board.
TFS's operational capability and extensive food and beverage brand portfolio place it in a strong position to benefit from the growth in air travel and travel-related expenditure in India. The IPO is expected to enhance TFS's market presence, credibility, and access to capital for future growth opportunities.
This announcement is based on a press release statement and contains inside information for the purposes of Article 7 of EU Regulation 596/2014. SSP is advised by Latham & Watkins, while TFS is advised by Latham & Watkins and Shardul Amarchand Mangaldas & Co.
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