Corporate Financial

Planned Initial Public Offering in India of Travel Food Services Limited

10/12/24

SSP Group plc (“SSP” or “the Group”), a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 37 countries, in conjunction with K Hospitality Corp, SSP’s joint venture partner in India, is pleased to announce the planned initial public offering (“IPO” or “the Transaction”) of Travel Food Services Limited (“TFS”), in its home market of India. TFS is the leading player1 in the fast-growing airport quick service restaurant and lounge sectors in India.

A Draft Red Herring Prospectus (the first public document in the Indian listing process, “DRHP”) of TFS in connection with the proposed IPO has been filed today with the BSE Ltd and will shortly be filed with the National Stock Exchange of India Limited. The DRHP will be published on the Indian Stock Exchanges (www.bseindia.com and www.nseindia.com),  the Securities and Exchange Board of India (“SEBI”) website (www.sebi.gov.in) and TFS’ website, which will be available at www.travelfoodservices.com/investors.

Following publication of the DRHP, in SSP’s role as a Promoter of the Transaction, SSP is under certain restrictions imposed by SEBI’s Issue of Capital and Disclosure Requirements with respect to dissemination of information regarding TFS. Please refer to the DRHP for further details on TFS and the transaction.

TFS has commissioned a report by CRISIL2 (part of S&P Global Inc.) (the “CRISIL Report”) exclusively in connection with the Offer for the purposes of confirming TFS’ understanding of the market in which it operates. The industry and market data cited in this announcement are sourced from the CRISIL Report. Further details and risks in relation to the CRISIL Report can be found in the DRHP.

Headlines

  • SSP, and our joint venture partner in India, K Hospitality Corp, will both act as Promoters of the planned IPO of TFS. Subject to regulatory approval, the pricing and completion of the IPO is targeted to be in Spring 2025
  • SSP and K Hospitality Corp have built a very strong partnership since the creation of the TFS joint venture and both partners remain fully committed to the long-term success of TFS
  • India is a strategically important market for SSP and we will continue to build on TFS’ market-leading position to capitalise on the opportunities in the fast-growing Indian travel market
  • SSP acquired an initial stake in TFS in 2016 and currently holds 49% of TFS (which it consolidates) for which it paid net consideration of £57.9m3
  • 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 of the purchase, 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 in the planned IPO

Commenting on the planned IPO, Patrick Coveney, CEO of SSP Group, said

“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 (“TFS”) 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.”

Commenting on the partnership with SSP Group, Varun Kapur, Managing Director and CEO of TFS, said

“Since 2016, we have benefited from SSP’s global Travel QSR expertise and best practices, alongside long-standing relationships with an extensive range of international brands and bespoke concepts. We look forward to growing our close partnership with SSP as we embark on this significant milestone for our joint venture.”