Saudi's PIF to buy 10% stake in Heathrow Airport for £1bn

Ferrovial, which holds 25% stake in parent company of Heathrow Airport Holdings, is divesting full holding for £2.4bn

Saudis PIF to buy 10% stake in Heathrow Airport for £1bn
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The Saudi Arabia-based Public Investment Fund (PIF) has entered into a share purchase agreement to acquire a 10 percent stake in FGP TopCo (TopCo), the holding company of Heathrow Airport Holdings, from Ferrovial for around £1 billion.

"Under the terms of the agreement, PIF will acquire 10 percent in TopCo, and Ardian through its infrastructure funds will acquire 15 percent through separate vehicles," says a release from PIF.

"The transaction is subject to complying with Right of First Offer (ROFO) and full tag-along rights which may be exercised by the other TopCo shareholders pursuant to the Shareholders’ Agreement and the Articles of Association of the company in addition to satisfaction of applicable regulatory conditions.

"PIF is pleased to be investing in Heathrow, a world-class airport, which acts as a key gateway to the world. PIF’s investment in Heathrow is in line with its strategy to support the business as a long-term partner.

"Heathrow is one of the world’s largest air traffic platforms, connecting the U.K. with global trading partners to help stimulate economic growth."

Ferrovial to sell stake for £2.4bn
Ferrovial has agreed to divest its entire stake (25 percent) in FGP Topco, parent company of Heathrow Airport Holdings, for £2.4 billion.

Luke Bugeja, CEO, Ferrovial Airports says: “Over the last 17 years, we have been contributing to Heathrow’s transformation, together with our fellow shareholders, achieving some excellent milestones throughout our long-term role as an investor. These include overseeing an investment of £12 billion, expanding its capacity with the construction of Terminal 2, and improving its operational performance. We are very pleased to have made Heathrow one of the world’s most connected airports and the busiest airport in Europe.”

Ferrovial remains committed to its airport business and investing in the sector in which it holds a 50 percent share in Aberdeen, Glasgow and Southampton airports in the United Kingdom, a 60 percent stake in Dalaman Airport in Turkey and 49 percent stake in JFK Airport New Terminal One in New York, the release added.

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