Heathrow: Ferrovial’s £2.4bn Saudi deal facing roadblock as other shareholders look to sell
A number of Heathrow’s shareholders have said they plan on selling their stakes in the hub, in a move which could put the Spanish group Ferrovial’s £2.4bn deal to sell off its holding in doubt.
In November, Ferrovial signed a deal with Saudi Arabia’s Public Investment Fund (PIF) and the Saudi-backed asset management firm Ardian to offload 25 per cent of its stake in the airport.
As other shareholders mooted selling, the news sparked concerns among some MPs and human rights campaigners that the oil-rich nation could take majority control of the UK’s biggest airport.
Ardian and the PIF agreed to buy 15 and 10 per cent of Ferrovial’s stake respectively, but the deal gave the airport’s other shareholders the option of selling their holdings under the same terms as the Spanish infrastructure giant.
Ferrovial said today that in accordance with the so-called “tag-along” process, shareholders representing 35 per cent of the share capital had exercised their rights to sell out.
The agreement for the sale and purchase of Ferrovial SE’s subsidiary’s shares in FGP Topco remains in force although it is a condition for the sale of the shares that the Tagged Shares are also sold. The parties are working towards satisfaction of such condition by exploring different options to satisfy the same.
The announcement places the £2.4bn deal in doubt, as both Ardian and the Saudis are not obliged to buy the new shares on offer.
Ferrovial said the agreement for the sale of its shares “remains in force” although it is a condition of the sale that the other shares were also offloaded. “The parties are working towards satisfaction of such condition by exploring different options to satisfy the same,” it added.
One person familiar with the deal said that the Saudis had no plans to increase their stake in the hub beyond 10 per cent, according to the Financial Times.
City PM understands Ardian is open to raising its offer, but the firm would be unlikely to pay for all of the extra 35 per cent now available.
Heathrow’s other major shareholders include a string of state-backed investment vehicles, such as the Qatar Investment Authority and the sovereign wealth funds of Singapore and China. Pension funds including Canada’s Caisse de Dépôt and the Australian Retirement Trust also hold investments in the group.