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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 released on Thursday. 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.
FROM THE RUMOR MILL-
First Heathrow Airport, now Newcastle Airport? PIF is reportedly eyeing a piece of Newcastle Airport as the UK looks to sell a 49% stake worth as much as GBP 1 bn, the Sunday Times reports, citing what it says are City sources. The stake on offer is owned by Infrabridge. JP Morgan is quarterbacking the sale. The fund also owns Newcastle United FC.
