SSP to take controlling stake in Indian JV ahead of £1.2bn IPO

(Sharecast News) - Hospitality group SSP has said its joint-owned Indian operations will be worth up to £1.23bn in a proposed stock market listing in Mumbai as it announced the purchase of an additional stake to give it majority control. SSP, which operates convenience food stores and restaurants in travel gateways across 40 countries, plans to list the Travel Food Services joint venture with K Hospitality Corp on 14 July.

TFS has now filed its Red Herring Prospectus with India's regulatory authorities, setting out a price brand of 1,045-1,100 Indian rupees per share, indicating an expected market capitalisation of INR137.6bn-144.8bn (£1.17bn-1.23bn).

"The Board believes that the planned IPO will benefit its shareholders by placing its investment in the strategically attractive Indian market onto an even stronger platform and by highlighting the value that has been created since its original acquisition of a stake in TFS," SSP said in a statement.

SSP, which currently owns 49% of TFS for which is originally invested just £58m in 2016, said it expects to shortly buy a further 1.01% stake for £12.5m, taking its holding to 50.01%.

SSP's group deputy CEO Jonathan Davies and the head of its Asia Pacific division, Jonathan Robinson, will both join the TFS board, replacing its existing nominee directors.

"India is a strategically important market for SSP and we will continue to support TFS to build on its market-leading position and capitalise on the opportunities in this fast-growing travel market," the company said.