Public Investment Fund to Acquire Stake in London's Heathrow Airport

Saudi Arabia's sovereign wealth fund and a French private equity firm are set to acquire a 38-percent stake in one of the busiest airports in the world – London’s Heathrow, which is owned by the consortium FGP Topco Limited, with Spanish infrastructure giant Ferrovial leading with a 25-percent share. Known for its expertise in transport infrastructure management, Ferrovial oversees a diverse portfolio of global assets, including 60 percent ownership of Turkey’s Dalaman Airport and a 49-percent share in the new Terminal 1 at JFK Airport in New York.  In November, Ferrovial announced plans to sell its stake, with Saudi Arabia’s Public Investment Fund acquiring 10 percent and French private equity group Ardian taking 15 percent.

However, the deal was blocked by a group of small FGP Topco shareholders who invoked their "tag-along rights," demanding to sell their shares under the same terms. Ferrovial stated that “Ardian and PIF have made a revised offer to acquire shares representing 37.62 percent of the share capital of FGP Topco" for USD 4.1 billion, indicating its acceptance of the bid. Following additional discussions, Ferrovial announced that Ardian would purchase approximately 22.6 percent of the shares, while PIF would acquire 15 percent. Heathrow was not considered a core asset by Ferrovial.

The company originally acquired its stake in Heathrow through a takeover in 2006, initially holding a majority stake of 56 percent, which it subsequently reduced over time.