London Heathrow Deal With Saudis to Bring New Owners for 60% of Airport - Bloomberg

London Heathrow Deal With Saudis to Bring New Owners for 60% of Airport - Bloomberg

Ferrovial SE’s planned sale of its holding in London Heathrow Airport to a duo including Saudi Arabia’s wealth fund stands to kick off an even larger disposal by other shareholders, meaning that more than half of the ownership interest in the UK hub is set to change hands.

Shareholders accounting for an added 35% of Heathrow’s parent company plan to join Ferrovial, currently the biggest owner, in the stake sale, the Spanish infrastructure firm said Tuesday.

Ferrovial said in November that it was selling its 25% interest to Saudi Arabia’s Public Investment Fund and the French private equity firm Ardian. At the time, the sides said other shareholders were eligible to participate in the deal.

PIF was originally set to buy a 10% stake in Heathrow’s parent, and Ardian to take a 15% stake, for a total of 2.37 billion pounds ($3 billion). The Saudi fund intends to stay at 10% while Ardian is considering buying more, according to a person familiar with the matter who asked not to be named discussing confidential deliberations.

Representatives for Ferrovial and Heathrow declined to identify potential buyers. Ardian and PIF declined to comment.

The Ferrovial deal earlier raised concerns over Saudi ownership of key UK infrastructure. The UK has previously ceded ownership of ports to the Middle East, with Dubai-based DP World running ports and freight terminals at London Gateway and Southampton.

That deal remains in force, but it is a condition of the sale that the other shares are also sold, Ferrovial said. The so-called “tag along rights” entitle other investors in the airport to sell their shares at the same price as Ferrovial.

Qatar Investment Authority currently owns a 20% stake in Heathrow. Other investors include Caisse de dépôt et placement du Québec, Singapore’s GIC sovereign wealth fund, and Alinda Capital Partners of the US.