India Hospitality Corp. (IHC) has sold 74% stake in its wholly-owned airline catering company @Skygourmet Private Limited to Switzerland-based Gate Gourmet, a member of Gategroup Holding AG for $39m in cash.
IHC will continue have a 26% in Skygourmet and is also entitled to proceeds from land sale in Delhi.
With this deal, Gategroup plans to expand in the Indian fast growing market, where air traffic has been increasing at an average of some 20% recently.
IHC has informed the transaction implies an enterprise valuation for the whole of Skygourmet at about $92 Mn. This implies, that the remaining amount may have gone towards adjusting debt of the firm.
The proceeds of the sale will be used by IHC to continue developing its hospitality and restaurant businesses.
Transaction Reference: ET