(Corrects advisory to say SSP Group’s share move and response added in paragraphs 6 and 7, not 5 and 6)
(Reuters) -Activist hedge fund Irenic Capital Management is trying to drum up interest in a take-private deal for Upper Crust owner SSP Group after boosting its stake in the food-to-go operator, the Financial Times reported on Thursday.
Irenic Capital Management declined to comment.
The New York-based hedge fund is encouraging private equity groups to launch takeover bids for the London-listed company, arguing that SSP could be valued at a 50% premium to its market value in a take-private deal, the newspaper reported, citing a pitch deck.
The fund points to SSP’s predictable revenues, its capacity to grow in U.S. airports and its ability to generate capital through the sale of non-core assets, including its stake in a listed Indian joint venture, the report said.
The fund has shared materials about the merits of a leveraged buyout with investment bankers and private capital firms in recent weeks, the report added.
SSP Group’s shares climbed more than 8% to 168.6 pence.
“We welcome the feedback and views of all our investors. We are entirely focused on delivering progress against our clear strategic priorities in order to deliver sustainable growth and returns for all of SSP’s stakeholders,” an SSP spokesperson told Reuters.
The company operates food and beverage outlets in travel locations, specialising in designing, creating, and operating a range of food and drink outlets in airports, train stations, and other travel hubs.
Irenic owns roughly 3% of SSP’s stock, the report said.
(Reporting by Rhea Rose Abraham and Anusha Shah in Bengaluru; Editing by Janane Venkatraman)
