Saudi Arabia's PIF To Buy 15% Of Heathrow Airport
Saudi Arabia’s Public Investment Fund and a French private equity group Ardian will acquire a 38% stake in Britain’s busiest airport, announced by the airport's principal shareholder, FGP Topco Limited. The transaction showcases the strategic interests of international investors in the UK's major transportation assets.
FGP Topco Limited, the consortium owning Heathrow, highlighted that Ferrovial, a Spanish infrastructure behemoth, currently leads with a 25% stake. Ferrovial decision in November to divest its stake led to the Public Investment Fund (PIF) of Saudi Arabia and Ardian stepping in to acquire shares. Initially, PIF aimed to secure 10%, with Ardian obtaining another 15% of Heathrow's shares.
However, the acquisition faced challenges from FGP Topco's minority shareholders, who invoked their "tag-along rights," demanding equivalent terms for the sale of their stakes. This led to a revised offer from Ardian and PIF, proposing to acquire a combined 37.62% of FGP Topco for £3.3 billion ($4.1 billion). Subsequent negotiations have resulted in Ardian agreeing to purchase approximately 22.6%, while PIF will acquire 15%.
Ferrovial's role in global transport infrastructure is well-documented, with interests spanning across various airports in Turkey and New York. Despite its significant stake, Heathrow was not considered a core asset by Ferrovial. The company first acquired a majority stake in Heathrow in 2006 but has since reduced its holding.
Rafael Del Pino, Ferrovial's chairman and Spain's third wealthiest individual according to Forbes, originally intended to sell the entire stake held by Ferrovial in FGP Topco. However, due to the intervention by the consortium's smaller shareholders, the company will now retain a 5.25% stake.
The conclusion of this transaction is pending regulatory approval, as noted by Ferrovial. This development is not only significant for the involved parties but also underscores the shifting dynamics within the global aviation infrastructure investment landscape.
Beyond Heathrow, Ferrovial boasts ownership stakes in several other vital UK airports, including Aberdeen, Glasgow, and Southampton, as well as international interests such as Turkey's Dalaman Airport and a 49% stake in JFK Airport's new Terminal 1 in New York. This extensive portfolio highlights Ferrovial's strategic investment approach in key global transportation assets, even as it adjusts its holdings in Heathrow.
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