PIF and Ardian Acquire 37.62% Stake in Heathrow Airport

Saudi Arabia’s sovereign wealth fund – The Public Investment Fund (PIF) – along with Ardian have acquired 37.62% stake in Heathrow International Airport from the Spanish infrastructure group Ferrovial and FGP Topco Ltd., the parent company of Heathrow Airport Holdings Limited, for $2.1 billion.

Ardian and PIF, through separate vehicles, hold shares representing 22.6% and 15% of the share capital of FGP Topco respectively. As a result, Ardian became the largest shareholder of Heathrow Airport.

Ferrovial and FGP Topco have completed the sale of 37.62% of the share capital whereby Ferrovial has sold 19.75% and the FGP Topco and other shareholders have sold jointly 17.87% of the share capital of FGP Topco. As a result, Ferrovial now has 5.25% stake and the FGP Topco and other shareholders 4.75%.

As a consequence of the transaction, Ferrovial will recognize at 2024 year-end an estimated profit of $2.62 billion, of which $2.1 billion will correspond to the shares sold and 500 million euros to the 5.25% stake retained, which from that moment will be registered as a financial investment valued at fair value with changes recognized through profit and loss.

Iconic Asset Globally

Mathias Burghardt, Executive Vice-President and Head of Infrastructure, Ardian, said that they were proud to become part of the Heathrow family. Heathrow is an iconic global infrastructure asset, and this transaction marks another milestone moment for Ardian.

He said that they were passionate about infrastructure and the role it plays enabling growth and supporting the transition to net zero. Ardian intends to support the Heathrow management team as they work to achieve both goals, growing the airport sustainably over the years ahead.

Juan Angoitia Grijalba, Co-Head of Infrastructure Europe and Senior Managing Director, Ardian, said that the UK is a priority market for Ardian, and this transaction builds on their 17-year track record of successful infrastructure investments in the country.

“Our investment in Europe’s leading airport and the UK’s international gateway will draw on Ardian’s expertise in aviation, including previous investments in London Luton Airport and stakes in six airports in Italy. And it is another example of how we are delivering Ardian’s strategy of investing in significant infrastructure in our core markets. We delighted to be part of Heathrow’s future and committed to helping it grow sustainably,” Juan added.

Lord Deighton, Chairman of Heathrow Airport Holdings, said that Heathrow has been a vital national asset connecting the UK to the world and driving prosperity in every corner of the country.

“We are delighted to welcome Ardian and PIF as new shareholders and investors in Heathrow’s future. We have a Board of experienced infrastructure investors committed to our long-term development and growth, supporting our strategic journey to make Heathrow an extraordinary airport, fit for the future,” he added.

Rachel Reevs, the UK’s Chancellor of the Exchequer, said that their number one mission was to deliver economic growth in every part of the UK to improve living standards.

“Attracting investment to our shores supports that goal. That’s why this investment matters. It’s also a strong vote of confidence in the UK, and comes on top of the £63bn of investment secured from international investors earlier this year, showing Britain is back in business,” she added.