Ardian, Saudi’s PIF to buy 37.6% stake in Heathrow, Ferrovial keeps 5%

Infrastructure giant Ferrovial said on Friday, June 14 it had reached a new agreement with French private equity fund Ardian and Saudi Arabia’s Public Investment Fund (PIF) to sell the bulk of its 25 per cent stake in Heathrow airport while keeping 5.25 per cent.

Under the new agreement that also involves other sellers, Ardian and PIF will acquire 22.6 per cent and 15 per cent respectively of FGP Topco, which is the parent company of Heathrow Airport Holdings, for a total of 3.26 billion pounds ($4.13bn).

Under an initial agreement announced last year, Ferrovial would have disposed of its entire stake for GBP2.37bn, valuing the whole airport at GBP9.48bn pounds. The new agreement values Heathrow at Dhs8.66bn.

The Spanish-origin company that moved its holding to the Netherlands last year, did not disclose how much it would receive under the new agreement, which is subject to regulatory approval, or who the other selling shareholders were. The company and other partners will retain 10 per cent, it said.

Ferrovial, which builds and manages highways and airports, is focusing on its expansion in the US, where it is building a new terminal at New York’s John F. Kennedy International Airport.

Heathrow sale to wrap up by year-end

The company expects to complete the Heathrow sale by the end of 2024.

At the same time, Ferrovial is considering joining its partner, Australian financial group Macquarie, in a potential sale of stakes in three other British airports in Aberdeen, Glasgow and Southampton, an executive of Ferrovial said in May.

The pace of deal-making in the European airport sector is picking up after Vinci Airports acquired a 50.1 per cent stake in Edinburgh Airport.