Saudi Arabia’s Sovereign Wealth Fund Acquires 10% Stake in Heathrow Airport Owner

The deal includes French private equity firm Ardian acquiring a 15% stake in FGP TopCo, leaving the Qatar Investment Authority as the largest shareholder.

Saudi Arabia’s Public Investment Fund has agreed to acquire a 10% stake in Heathrow Airport owner FGP TopCo Ltd, which oversees Heathrow Airport Holdings Ltd., from Spanish infrastructure giant Ferrovial SA, which is selling its entire 25% stake in the holding company.

Under the terms of the agreement, the PIF will acquire a 10% stake in FGP TopCo, while French private equity firm Ardian will acquire a 15% stake from Ferrovial through its infrastructure funds for just under 2.37 billion pounds ($3 billion). That values the PIF’s share at approximately $1.2 billion, while Ardian’s stake is worth approximately $1.8 billion.

“PIF is pleased to be investing in Heathrow, a world-class airport,” stated a PIF release. “PIF’s investment in Heathrow is in line with its strategy to support the business as a long-term partner.”

With its 25% ownership stake, Ferrovial is currently the largest shareholder in FGP TopCo, while the Qatar Investment Authority is set to assume that mantle with its 20% stake. Other owners include Caisse de dépôt et placement du Québec 12.62%, GIC 11.20%, Australian Retirement Trust 11.18%, China Investment Corporation 10% and Universities Superannuation Scheme 10%.

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According to the companies involved in the deal, the transaction is subject to compliance with the right of first offer and full tag-along rights, which may be exercised by the other TopCo shareholders, per the shareholders’ agreement and the company’s articles of association, along with meeting applicable regulatory conditions.

“Over the last 17 years, we have been contributing to Heathrow’s transformation, together with our fellow shareholders, achieving some excellent milestones throughout our long-term role as investor,” Luke Bugeja, CEO of Ferrovial Airports, said in a statement. “These include overseeing an investment of 12 billion pounds, expanding its capacity with the construction of Terminal 2, and improving its operational performance.”

Ferrovial, which became the majority shareholder at Heathrow in 2006 and has reduced its share over the years, also owns a 49% in stake in Terminal One at JFK Airport in New York, a 50% stake in airports in Aberdeen, Glasgow and Southampton in the U.K. and a 60% stake in Dalaman Airport in Turkey.

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Tags: Ardian, Ferrovial, FGP TopCo, Heathrow Airport Holdings, Luke Bugeja, PIF, Saudi Arabia, Saudi Arabia’s Private Investment Fund (PIF), sovereign wealth funds

Danish pension giant PensionDanmark sold its stake in Tesla and put the company on its restricted list over Tesla’s refusal to sign a collective bargaining agreement in neighboring Sweden, the pension fund confirmed in an email.

Swedish union IF Metall is currently clashing with Tesla after the latter refused to enter in any union agreement in the county. Several labor unions in the Nordic region announced they would support IF Metall’s strike against Tesla, with some unions threatening to block transportation of Tesla vehicles across Scandinavia.

According to PensionDanmark, it is the fund’s policy to divest from companies that do not align with the fund’s values. If shareholder activism does not work, then the company divests and adds the security to a “restricted list.”

“PensionDanmark’s approach to responsible investments is founded on international conventions and agreements, including the [International Labour Organization] conventions,” the pension fund stated to CIO. “If a company does not comply with our policies, we initially attempt to influence the company through active ownership—directly and co-ordinated with other shareholders. This has been the case with Tesla as well. If we determine that we cannot impact the company, we may have to sell our shares and place the company on our exclusion list.”

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“In the light of the conflict spreading to Denmark and Tesla’s latest and very categorical denial to reach collective agreements in any country, we have reached the conclusion that we as investors for the time being are unlikely to influence the company,” the statement continued. “Therefore, we are placing Tesla on our exclusion list.”

PensionDanmark manages 317.3 billion Danish kroner ($45 billion), as of 2023’s third quarter, for 800,000 labor union members in Denmark. The pension fund was founded by labor unions and employer organizations.

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Tags: Denmark, PensionDanmark, Pensions, Tesla