Heathrow’s Spanish owner Ferrovial considers selling stake if airport does…

heathrow’s-spanish-owner-ferrovial-considers-selling-stake-if-airport-does…

Heathrow’s Spanish owner Ferrovial considers selling stake if airport does…

Heathrow’s Spanish owner Ferrovial considers selling stake if airport does not make enough money
2022-08-10 17:16:00
Ferrovial, which owns 25% of Heathrow, is considering selling its stake. A French investor, Ardian – which has other airport interests – might buy it. Ferrovial considers it has not made, and is not making, enough money from Heathrow.  It is displeased by the CAA ruling, that Heathrow cannot hugely increase its landing fees charged per passenger at Heathrow. Heathrow wanted to put this up to over £40 per person, but recently the CAA ruled that it will have to fall from £30.19 to £26.31 by 2026, despite a furious lobbying effort by the airport. Ferrovial is understood to have been approached by Ardian, a Paris-based private equity firm, about a possible joint deal with Saudi Arabia’s Public Investment Fund. Ardian held a 49% stake in Luton airport between 2013 and 2018.  Ferrovial has said it would be sceptical about committing further funding to Heathrow if the airport cannot get CAA agreement on charges.  The lower landing charges are a disincentive to new investors, who fear low profits.  Experts consider that any decision to cut off funding was likely to scupper plans for a 3rd runway, with progress already disrupted by a sharp fall in air travel during the pandemic and huge debts. .Tweet   Heathrow investor could take flight By  Russell Hotten August 10th 2022, (The Times) Heathrow’s single largest investor is reportedly looking at offloading all or part of its stake in the airport. Ferrovial, the Spanish infrastructure giant, is considering options for its 25% stake, with private equity firms and Saudi Arabia’s sovereign wealth fund said to have shown interest, according to Reuters. It reported that Ferrovial’s board had made no final decisions and had several times in the past reviewed options for its investment. Analysts value the stake in Britain’s biggest airport at up to €2 billion. News of the possible sale sent Ferrovial’s Madrid-listed shares up nearly 4% yesterday. Ardian, the Paris-based private equity firm, and its advisers had held talks about a joint offer with the Saudi public investment fund, Reuters said. Heathrow is mired in controversy about congestion, investment in infrastructure and the amount of money it charges airlines to use the airport. Ferrovial has held its stake for 16 years. It controls the Spanish transport infrastructure developer Cintra and has stakes in motorways in the US and Canada. Its Heathrow experience has been difficult and Ignacio Castejón, the chief financial officer of its airports business, said last year he was “very sceptical” about contributing further capital, citing a lack of recovery in its economic value and low equity returns. Other investors in the London hub are the Qatar Investment Authority, with 20%, the pension fund manager Caisse de dépôt et placement du Québec, Singapore’s sovereign wealth fund GIC and China Investment Corporation. Heathrow is worth about €24.3 billion, including debt, JPMorgan analysts calculated in May. By those estimates, Ferrovial’s Heathrow holding has an equity value of €611 million. The airport, which the aviation data firm OAG said was the world’s fifth busiest airport in July, was hard hit by lockdowns, but raised its 2022 traffic forecast to 54.4 million passengers in June after a travel rebound. Last month Heathrow, like s

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