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London just got a bit more Saudi: The Public Investment Fund (PIF) has completed the acquisition of a 15% stake in FGP TopCo, Heathrow Airport’s parent company, from Spanish infrastructure player Ferrovial and other shareholders, according to a statement. At the same time, Paris-based equity firm Ardian snapped up 22.6% in the London airport for the same group of shareholders via a separate vehicle.
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Ironing out the kinks: PIF and Ardian had entered into a binding agreement with Ferrovial in November of last year which would have seen the pair grab 10% and 15% stakes apiece in FGP TopCo. The agreement was later revised in June after some FGP Topco shareholders exercised tag-along rights, demanding to be bought out so as to not block the full sale. The revised agreement sees the PIF and Ardian acquiring a 37.6% stake in the airport for GBP 3.3 bn (c.USD 4.1 bn).
SOUND SMART- If a shareholder exercises tag-along rights, the buyer must take their shares at the same price it offered other shareholders — or walk away.
