Several major shareholders of London Heathrow are contemplating following in Ferrovial’s footsteps by selling their stake to Saudi Arabia’s state-run investment fund.
According to a Sunday Times report, Saudi’s Public Investment Fund (PIF) is offering to buy the shares at a £9.5 billion valuation; an attractive proposition for existing shareholders of Europe’s largest airport.
Spanish transport group Ferrovial agreed to sell its 25% stake in November for £2.4 billion, with PIF buying 10% and French private equity group Ardian buying 15%.
The deal awaits regulatory approval and compliance with the rights of Heathrow’s other owners.
At least one other shareholder is close to selling their stake too, according to reports. “At that price, we are a seller,” the shareholder told The Times.
Under the terms of the deal, all other existing Heathrow shareholders would also be entitled to sell at the same price, potentially leaving Saudi Arabia as the controlling shareholder in the airport.
Heathrow Airport is owned and managed by Heathrow Airport Holdings Limited, which in turn is owned by FGP Topco, a consortium in which Ferrovial, for now, still owns a 25% stake.
A host of sovereign wealth and pension funds own the rest of the company, with a 20% stake controlled by the Qatar Investment Authority, a 12.62% stake controlled by a Québec pension fund and 11.2% controlled by Singapore’s sovereign wealth fund.
Australian Retirement Trust, China Investment Corporation and the Universities Superannuation Scheme in the UK also have partial ownership.
None of them has confirmed or denied the Times report.
Heathrow passenger numbers increase
Heathrow currently operates at a loss, though passenger numbers continue to rebound post-Covid.
In November, the airport saw an influx of 6.1 million passengers.
The period saw many passengers leaving behind frosty mornings in pursuit of warmer destinations, while 50,000 people flew across the Atlantic from Heathrow on the Friday before Thanksgiving, according to data released on Monday.
Similarly, flights to India were in high demand as travellers took advantage of 15 daily flights to celebrate Diwali with family and friends.
Heathrow chief executive Thomas Woldbye said: "For so many, holidays and cultural festivities are all about spending quality time with friends and family. Last month saw passengers travelling to celebrate Thanksgiving and Diwali with their loved ones, and we are making final preparations for the Christmas getaway.
“We need to protect these benefits of aviation in a world without carbon, which the history-making 100% SAF transatlantic flight proved is possible.
“Now we need collaboration between Industry and Government who both have critical deliveries, to scale up SAF production to make 100% SAF flights an everyday reality."