Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), along with French private equity group Ardian, will acquire a 38-percent stake in London’s Heathrow Airport, as confirmed by the airport’s largest shareholder, Ferrovial, on Friday.
Heathrow, one of the busiest airports globally, is currently owned by the consortium FGP Topco Limited. Spanish infrastructure giant Ferrovial leads the consortium with a 25-percent stake. In November, Ferrovial announced plans to sell its stake, with 10 percent going to Saudi Arabia’s PIF and 15 percent to Ardian.
However, the sale was initially blocked by smaller FGP Topco shareholders who invoked their “tag-along rights,” demanding the opportunity to sell their shares under the same conditions. This led to Ardian and PIF making a revised offer to acquire 37.62 percent of FGP Topco’s share capital for £3.3 billion ($4.1 billion), which Ferrovial accepted.
Following further negotiations, Ardian will acquire approximately 22.6 percent of the shares, while PIF will take a 15 percent stake. Ferrovial will retain a 5.25 percent stake in the consortium, modifying its original plan to sell its entire shareholding due to the intervention of the smaller shareholders.
Ferrovial, a specialist in transport infrastructure management, operates a broad portfolio of global assets, including stakes in airports in Turkey and New York. Heathrow was not considered a core asset by Ferrovial, which had initially acquired a 56 percent stake in the airport in a 2006 takeover but gradually reduced its interest.
The deal, which remains subject to regulatory approval, is expected to finalize after necessary clearances. Additionally, Ferrovial holds significant stakes in other UK airports, including Aberdeen, Glasgow, and Southampton, as well as a 60 percent stake in Turkey’s Dalaman Airport and a 49 percent stake in JFK Airport’s new Terminal 1 in New York.
Last year, Ferrovial faced controversy for relocating its headquarters to the Netherlands, a move aimed at accessing cheaper credit and increasing investor attractiveness ahead of a planned US stock listing.
