The Guardian - Gwyn Topham
Investors may sell shares to oil-rich state’s Public Investment Fund, which already owns a stake, report says
Saudi Arabia could take effective majority control of London Heathrow, the UK’s major airport, with other investors considering selling their stakes, according to reports.
The oil-rich state’s Public Investment Fund (PIF) allied with private equity investor Ardian to announce the purchase of a 25% stake in the airport last month from Ferrovial, the Spanish infrastructure giant that had been the primary owner of Heathrow for 17 years.
According to a report in the Sunday Times, at least one other shareholder is close to selling their stake, while other investment funds could follow.
Under the terms of the airport’s shareholder agreement, other investors – including international pension funds with total holdings approaching 35% – are entitled to sell at the same price, which values Heathrow at about £9.5bn, seen as a generous valuation.