PIF buys 10% stake in UK’s Heathrow airport

Saudi Arabia’s Public Investment Fund (PIF) will acquire a 10 percent stake in the parent company of London Heathrow, the UK’s busiest airport.

Spanish infrastructure major Ferrovial will sell its entire 25 percent stake in FGP Topco for £2.37 billion ($3.01 billion), the company said in a statement.

Paris-based private equity fund Ardian will buy the remaining 15 percent stake.

• PIF signs first funding deal with an export credit agency
• PIF expects $1trn real estate spending over next decade
• Saudi plans to create global ‘aerotropolis’ with new airport

The transaction is subject to regulatory conditions and compliance with the right of first offer and full tag-along rights, which may be exercised by the other FGP Topco shareholders.

Other stakeholders include Qatar Investment Authority, Caisse de dépôt et placement du Québec, Singapore’s GIC, Australian Retirement Trust, China Investment Corporation and the Universities Superannuation Scheme, Bloomberg reported. Each of them holds stakes below 13 percent.

Ferrovial purchased an indirect stake of 55.87 percent in Heathrow Airport Holdings in 2006. It sold 10.6 percent to Qatar Holding in 2012, reducing its stake to 25 percent in 2013.

Luke Bugeja, CEO, Ferrovial Airports, said the company has been contributing to Heathrow’s transformation, overseeing an investment of £12 billion, expanding its capacity with the construction of Terminal 2, and improving its operational performance. 

In October, Heathrow Airport raised its 2023 passenger forecast, expecting to handle about 79.3 million passengers this year, compared with an earlier forecast of between 70 million and 78 million.