SSP Group plc (LSE:SSPG) shares are up over 6% on a report that a New York activist hedge fund is trying to rustle up interest in a take-private deal.
Irenic Capital Management, which owns around a 3% stake in The Upper Crust owner, has been promoting the potential benefits of a leveraged buyout with investment bankers and private capital firms in recent weeks, the Financial Times reported.
New York-based Irenic, founded by former Elliott Management portfolio manager Adam Katz, reckons SSP could be valued at a 50% premium to its current market value.
Its pitch book notes potential capacity to grow in US airports, while its Indian venture TFS is valued at around £1.50 billion, compared to SSP’s market value of £1.25 billion.
Irenic used a slightly more aggressive playbook when it took a stake in Wagamama owner The Restaurant Group in 2023, working in private with the board over the last year before calling for the replacement of the chariman and later campaigning to encourage buyer interest, which resulted in a £506 million takeover by private equity group Apollo.