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Saudi Arabia’s sovereign wealth fund is taking a £1bn stake in London’s Heathrow airport as the infrastructure group Ferrovial offloads shares in the UK travel hub it has owned for 17 years.
Ferrovial, which shifted its head office from Madrid to Amsterdam this year, said late on Tuesday that it was selling its 25 per cent stake in the airport’s parent company for £2.4bn.
In the transaction, Saudi Arabia’s Public Investment Fund will acquire 10 per cent of shares in the company and Ardian, one of Europe’s largest private equity groups, will purchase 15 per cent.
The deal marks the end of a chapter for Heathrow that began amid drama and controversy in 2006 when Ferrovial launched a successful hostile bid for BAA, the UK airports operator.
Ardian is a leading player in infrastructure and has invested heavily in transportation assets including high-speed rail lines in France and airports across Europe.
Airports in the UK have proven a popular hunting ground for investors. Private equity groups have bought stakes in Edinburgh and London City airports among others.
Ferrovial said the transaction was subject to regulatory approval and compliance with rights that may be exercised by the other owners of Heathrow’s parent company, FGP Topco.
Those owners include the Qatar Investment Authority, which has a 20 per cent stake, as well as Singapore’s GIC and the Australian Retirement Trust, which each own 11.2 per cent.