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Investing.com -- Shares of SSP Group rose by 4.9% on Friday following news that Irenic Capital Management, a New York-based activist investor, is building a stake in the company.
Irenic intends to pressure SSP to boost its profitability, potentially setting the stage for a private equity takeover.
Irenic has acquired around a 2% stake in SSP Group, which operates food outlets in airports and railway stations, the report said, which was published by the Financial Times on Thursday, citing sources familiar with the matter.
The activist investor has made it clear that it believes SSP’s share price could be worth double its current valuation, advocating for the company to improve its profit margins.
The hedge fund, which plans to continue purchasing more shares, has held multiple meetings with SSP management, though no specific demands have been made as of yet, sources added.
Irenic’s previous campaign included targeting The Restaurant Group (LON:RTN), owner of Wagamama, which was successfully sold to Apollo in 2023.
While Irenic declined to comment on its latest move, SSP responded by stating that it is in regular dialogue with all of its investors, welcoming their feedback as part of its efforts to drive progress on its strategic priorities, the report said.
The company reiterated its commitment to delivering sustainable growth and returns for its stakeholders.
SSP has faced difficulties in recovering from the pandemic. The group, which also owns Ritazza and operates travel outlets for brands like Burger King and Marks & Spencer (OTC:MAKSY), has struggled with the slow recovery of rail travel, which has not yet rebounded to pre-pandemic levels.