PIF and Ardian Acquire 37.6% Stake in Heathrow Airport
The deal, valued at $4.18 billion, was confirmed in statements from Ferrovial and Ardian.
The Public Investment Fund (PIF) and Paris-based equity firm Ardian have finalized an agreement with Spanish infrastructure company Ferrovial to acquire a 37.6% stake in London’s Heathrow Airport. The deal, valued at $4.18 billion, was confirmed in statements from Ferrovial[1] and Ardian[2].
Under the revised agreement, the PIF will secure a 15% stake in FGP Topco, Heathrow Airport’s parent company, while Ardian will acquire a 22.6% stake. This acquisition will be executed through separate investment vehicles.
Previously, PIF had entered a binding agreement in November to purchase a 10% stake in FGP Topco, and Ardian was set to acquire a 15% stake, totaling $3.04 billion at the time.
Ferrovial, which has been seeking to divest its entire stake in FGP Topco, encountered a major challenge as some shareholders exercised their tag-along rights to offload a 35% stake. The transaction, thus, remains subject to the right of first offer and full tag-along rights, along with regulatory approval.
In March, it was reported by Bloomberg that the PIF is in discussions regarding the acquisition of state-backed airline Saudia.
Bloomberg's report suggests that the potential acquisition could entail various scenarios, including privatization or a merger with PIF-owned Riyadh Air.
In May, the Public Investment Fund (PIF) was identified as the most valuable sovereign wealth fund (SWF) brand globally, according to new data from Brand Finance.[3]
PIF also ranks sixth internationally in the brand value to assets under management (AuM) ratio among asset management businesses, with a $1.1 billion brand value and an A+ brand strength grade.