Zurich air caterer to buy 74% in Skygourmet

New Delhi: The $3-billion Gate Gourmet, the world’s largest air catering company, has decided to acquire majority stake in Skygourmet from India Hospitality (IHC) for around Rs400 crore. Under the proposed deal, Zurich-listed Gate Gourmet will acquire 74% stake in Skygourmet, India’s largest air catering company. The balance 26% will be retained by IHC.
Confirming the transaction, Ravi Deol, managing director and CEO, IHC said: “Gate is joining as majority partner in the company.” The scale and expertise of Gate Gourmet will further consolidate Skygourmet’s leadership position in the Indian aviation market, he added.
London’s AIM .listed Indian hotel and restaurant company IHC will use the sale proceeds to part finance the proposed acquisition of Wagamama, the world’s largest noodle bar chain with over 38 international restaurants and 66 restaurants based in the UK, said another official familiar with the development.
IHC is the frontrunner in the race for Wagamama. Besides IHC, two private equity firms — Morgan Stanley’s private equity wing and Bahrain-based Investcorp — have also submitted bids. “Since the Wagamama deal is around Rs1,800 crore, IHC will also raise non-recourse loan to finance the deal,” the official said.
12/11/10 Arun Kumar/Economic Times

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Categories: Foreign Nov 2010, Indian Aviation- In General Nov 2010