Ardian, Saudi PIF Complete $4.2B Acquisitions of Stake in Heathrow Airport

The two investors purchased interests in FGP TopCo, with Ardian taking a 22.6% stake and the PIF a 15% cut.



The Public Investment Fund of Saudi Arabia
announced Monday that it has finalized its acquisition of a 15% stake in FGP TopCo Ltd., the holding company which operates Heathrow Airport Holdings Ltd. The stake was purchased from Spanish transportation and infrastructure firm Ferrovial S.E. and other shareholders.

Additionally, French alternative investment firm Ardian SAS announced that it acquired a 22.6% stake in FGP TopCo, becoming the holding company’s largest shareholder. As part of the transaction, Ferrovial’s stake in the airport operator decreased to 5.25%.

Ferrovial previously held a 19.75% stake in FGP TopCo, while existing shareholders who also sold their stakes held 17.87% of shares.  According to Ferrovial, the combined purchase price was 4 billion euros ($4.2 billion).

“PIF is pleased to be investing in Heathrow Airport, a vital U.K. asset and a world-class airport,” said Turqi Al-Nowaiser, the PIF’s deputy governor and head of international investments. “We believe in the importance of infrastructure as a key sector in supporting the transition to net zero.”

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The PIF announced in December 2023 that it had agreed to acquire a 10% stake in the airport operator, with Ardian seeking a 15% stake. In the PIF’s announcement, the investment was described as in line with the PIF’s strategy to “support important sectors and businesses as long-term partners as part of its global portfolio of assets.”

“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub,” Al-Nowaiser said. 

London Heathrow is no stranger to institutional ownership. In addition to the PIF and Ardian, its largest stakeholders also include the Qatar Investment Authority (20% stake), Singapore’s GIC (11.20%), the Australian Retirement Trust (11.18%), China Investment Corp. (10%), Caisse de dépôt et placement du Québec (2.65%) and the U.K.’s Universities Superannuation Scheme (2.10%).

“Heathrow is a vital national asset connecting the U.K. to the world and driving prosperity in every corner of the country,” said Paul Deighton, Heathrow Airport Holdings Ltd.’s chairman, in a statement. “We’re 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.”

According to reports, the PIF is looking to acquire a large stake—as high as 49%—in Newcastle International Airport, also in the U.K. The PIF will also own the to-be-constructed King Salman International Airport in Riyadh, which will, according to the PIF, accommodate 120 million passengers by year by 2030.

The PIF, the sovereign wealth fund of Saudi Arabia, manages $925 billion in assets. Ardian manages $176 billion in assets across private equity, real assets and credit strategies. 

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PBGC Provides $29.3M to Teamsters Local 11 Pension Plan

The New Jersey-based transportation workers pension fund is in critical status, according to the Pension Benefit Guaranty Corporation.




The Pension Benefit Guaranty Corporation announced Friday that it will provide $29.3 million in assistance under the Special Financial Assistance Program to the Teamsters Local 11 Pension Plan, approving the plan’s application.
 

The SFA Program provides financial assistance to pension plans that are distressed and on the verge of insolvency.  

The New Jersey-based Teamsters Local 11 plan covers 2,112 participants in the transportation industry. According to the plan’s Form 5500 for plan year 2023, the plan had assets of $75.18 million and has a funded status of 61.7%. The plan is in critical status and, prior to receiving the assistance, was not expected to emerge from critical status until 2043.  

The Department of Labor informed the plan that it had entered critical status—meaning the plan had significant funding and/or liquidity problems—on June 29, 2021. The plan applied for special financial assistance on August 29, 2024.  

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“By providing Special Financial Assistance, the Biden-Harris administration will ensure that these … workers in the North Jersey area get the benefits they have earned after a lifetime of hard work and can retire with dignity,” said Acting Secretary of Labor Julie Su in a statement. 

According to a statement by the PBGC, the organization has provided a total $69.8 billion in special financial assistance to pension plans covering more than 1.2 million workers. Nearly 70% of this financial assistance has gone to plans administered by the Teamsters union. Approximately 33 Teamsters unions covering 538,000 participants have received a total of $48.7 billion in special financial assistance since March 11, 2021.  

The SFA Program was enacted as part of the American Rescue Plan Act of 2021. Plans that receive special financial assistance from the PBGC must allocate at least two-thirds of the assistance provided to fixed-income investments. According to the Final Rule on Special Financial Assistance, issued in July 2022, the other third can be invested in “return-seeking investments,” such as stocks and stock funds.  

Related Stories: 

PBGC Provides Financial Assistance to Pressroom Union Plan 

PBGC Approves $23.6M Grant to Midwestern Teamsters’ Pension Fund 

Teamsters Plan Receives $5.7B From PBGC 

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