The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has entered into a share purchase agreement (SPA) to acquire a 10 percent stake in FGP TopCo (TopCo), the holding company of Heathrow Airport Holdings Ltd, from Ferrovial S.A.
Ferrovial, the Spanish multinational company, that moved its head office from Madrid to Amsterdam this year, has announced recently that it was selling its 25 percent stake in the airport’s parent company for $3 billion.
Under the terms of the agreement, PIF will acquire 10 percent of TopCo, and the French private equity firm, Ardian through its infrastructure funds will acquire 15 percent through separate vehicles. 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.
“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 investor. These include overseeing an investment of $15 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.”
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 owns and runs London Heathrow Airport, Britain’s aviation hub and is one of the world’s largest air traffic platforms, connecting the UK with global trading partners to help stimulate economic growth.