Saudia Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), and Ardian — the French private equity firm, announced that they have formally closed the acquisition of a 37.6 per cent stake in London Heathrow Airport from Ferrovial and certain other FGP TopCo shareholders.
While Public Investment Fund has taken a 15% stake in FGP Topco Ltd, the company that owns London’s Heathrow Airport, Spanish construction giant Ferrovial closed the sale of a 19.75% stake in the UK capital’s busiest airport for 2 billion euros ($2.1 billion) to the PIF and French investment firm Ardian.
Other shareholders of FGP Topco Ltd sold an additional 17.87% stake, taking Ardian and PIF's purchase up to 4 billion euros for 37.62%, Ferrovial said.
Ferrovial, which became a shareholder in Heathrow in 2006, is selling the entirety of its 25% stake in FGP Topco Ltd as it focuses more on its US airport investments, including in New York’s John F Kennedy Airport.
In a statement, PIF deputy governor and head of international investments Turqi Al-Nowaiser said,
"The PIF is pleased to be investing in Heathrow Airport, a vital UK asset and a world-class airport. We believe in the importance of infrastructure as a key sector in supporting the transition to net zero.”
“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub,” he said.
The PIF, which manages some $925 billion in assets, added in the statement that the Heathrow investment was in line with its strategy to support important sectors and businesses as long-term partners.
PIF also said that its investment in Heathrow Airport aligns with the fund’s strategy of supporting key sectors and businesses as long-term partners, thereby expanding its global portfolio of assets.
In December 2023, the PIF agreed to acquire a 10% stake in FGP Topco Ltd., the Press release further read,
This statement should be read in conjunction with Ferrovial’s statement issued today and its statements issued on November 28, 2023, January 16, 2024 and June 14, 2024, and by PIF on November 29, 2023.
The Qatar Investment Authority, Qatar’s sovereign wealth fund, has retained its 20% stake in the airport, which makes it the second-largest shareholder after the latest PIF acquisition.
Other owners include Caisse de dépôt et placement du Québec, GIC, the Australian Retirement Trust China Investment Corporation and Universities Superannuation Scheme.
With a variety of investments ranging from date farms to multinational conglomerates, PIF’s sources of funding include retained earnings from investments, capital injections from the government, government assets transferred to the fund, and loans and debt instruments.
This doesn't seem to be the end, GCC countries are increasingly showing interest in the investment in U.K.'s busiest airport, as Abu Dhabi’s Mubadala Investment Company is reportedly also considering an investment in Heathrow Airport, which could land it to join the PIF and the Qatar Investment Authority as major shareholders of the Heathrow.
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