Dubai: The private investment firm Ardian will emerge as the biggest shareholder in London’s Heathrow, one of the world’s busiest airports.
One of the world's most influential sovereign funds, the Saudi PIF, is the other new shareholder in the UK airport. The new deal sees PIF buy 15% in the airport’s holding company. PIF has in recent years been deploying its funds and influence within Saudi Arabia itself, helming some of the many mega-projects the Kingdom has going on, including in the aviation space.
PIF owns the soon-to-launch Riyadh Air and all the airports in Saudi Arabia.
Ardian's growing UK portfolio
Ardian has completed a 22.6% stake buy in FGP TopCo, the holding company for Heathrow Airport Holdings. The stake was bought from Ferrovial and some other TopCo shareholders.
While easily remaining one of the world's busiest airports, London Heathrow has had to field its share of issues, notably to do with not being able to meet passenger traffic surges during peak summer in recent years. "Heathrow is a vital national asset connecting the UK to the world and driving prosperity in every corner of the country," said Lord Deighton, Chairman of Heathrow Airport Holdings. "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.”
Ardian, incidentally, is a shareholder in London's Luton Airport.
“The UK is a priority market for Ardian, and this transaction builds on our 17-year track record of successful infrastructure investments in the country," said Juan Angoitia Grijalba, Co-head of Infrastructure for Europe and Senior Managing Director at Ardian.
"Our investment in Europe’s leading airport and the UK’s international gateway will draw on Ardian’s expertise in aviation, including previous investments in London Luton Airport and stakes in six airports in Italy.
"And it is another example of how we are delivering Ardian’s strategy of investing in significant infrastructure in our core markets. We are delighted to be part of Heathrow’s future and committed to helping it grow sustainably.”
