Ferrovial closes the sale of a 19.75% stake in Heathrow for 2,000 million euros

Rhea-AI Summary

Ferrovial has completed the sale of a 19.75% stake in FGP Topco , the parent company of Heathrow Airport Holdings , for approximately 2,000 million euros. The transaction was part of a larger 37.62% stake sale, where Tagging Shareholders sold an additional 17.87%. The total deal value reached GBP 3,259 million (approximately 4,000 million euros).

Following the transaction, Ferrovial retains a 5.25% stake, while Ardian and PIF now hold approximately 22.6% and 15.0% respectively. The company expects to recognize an estimated profit of 2,500 million euros at 2024 year-end, with 2,000 million euros from the sold shares and 500 million euros from the revaluation of the retained stake.

Positive

• Sale of 19.75% stake generates approximately 2,000 million euros in proceeds
• Expected recognition of 2,500 million euros total profit in 2024
• Additional 500 million euros profit from revaluation of retained 5.25% stake

Negative

• Significant reduction in ownership stake from 25% to 5.25% reduces influence in Heathrow operations

Insights

Financial Analyst

This major divestment significantly strengthens Ferrovial's financial position, generating an impressive 2.5 billion euros in profit. The transaction values Heathrow at a premium, with Ferrovial receiving 2 billion euros for the 19.75% stake sale. The remaining 5.25% stake revaluation to 500 million euros demonstrates strong market confidence in Heathrow's value proposition.

The deal structure, involving Ardian and PIF as buyers, brings strategic investors with deep pockets and long-term investment horizons. This transaction provides Ferrovial with substantial cash reserves for potential reinvestment in its core infrastructure business or shareholder returns. The accounting treatment change for the retained stake to mark-to-market valuation adds earnings volatility but provides greater transparency on Heathrow's market value.

Market Research Analyst

The successful completion of this transaction marks a strategic pivot for Ferrovial, reducing exposure to airport operations while crystallizing significant value from its long-term Heathrow investment. The entry of Ardian and PIF, acquiring 22.6% and 15% respectively, reshapes Heathrow's ownership landscape with strong institutional backing. The deal's completion, following regulatory approvals, demonstrates smooth execution of a complex cross-border transaction.

The substantial profit recognition of 2.5 billion euros will materially boost Ferrovial's 2024 financial statements, likely supporting positive market sentiment. The retained stake's fair value treatment provides ongoing exposure to Heathrow's performance while freeing up capital for strategic redeployment.

AMSTERDAM, Dec. 12, 2024 /PRNewswire/ -- Reference is made to the press release communication dated 14 June 2024 regarding the sale by Ferrovial and certain other shareholders of FGP Topco Ltd (FGP Topco), parent company of Heathrow Airport Holdings Ltd. (the Tagging Shareholders) of 37.62% of the share capital of FGP Topco to Ardian and PIF.

Following satisfaction of applicable regulatory conditions, Ferrovial and the Tagging Shareholders have completed the sale of 37.62% of the share capital of FGP Topco whereby Ferrovial has sold 19.75% and the Tagging Shareholders have sold jointly 17.87% of the share capital of FGP Topco for GBP 3,259 million (approximately 4,000 million euros).

As a result, Ferrovial now holds shares representing 5.25% and the Tagging Shareholders now jointly hold shares representing 4.75% of the share capital of FGP Topco. Ardian and PIF, through separate vehicles, hold shares representing c. 22.6% and c. 15.0% of the share capital of FGP Topco respectively.

As a consequence of the transaction, Ferrovial will recognize at 2024 year-end an estimated profit of 2,500 million euros, of which 2,000 million euros will correspond to the shares sold and 500 million euros to the 5.25% stake retained, which from that moment will be registered as a financial investment valued at fair value with changes recognized through profit and loss.

About Ferrovial
Ferrovial is one of the world's leading infrastructure companies. The Company operates in more than 15 countries and has a workforce of over 24,000 worldwide. Ferrovial is triple listed on Euronext Amsterdam, the Spanish Stock Exchanges and Nasdaq and is a member of Spain's blue-chip IBEX 35 index. It is part of the Dow Jones Sustainability Index and FTSE4Good, and all its operations are conducted in compliance with the principles of the UN Global Compact, which the Company adopted in 2002.

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SOURCE Ferrovial

FAQ

How much did Ferrovial sell its 19.75% Heathrow stake for in 2024?

Ferrovial sold its 19.75% stake in Heathrow's parent company for approximately 2,000 million euros as part of a larger transaction completed in December 2024.

What is the total profit Ferrovial expects from the Heathrow stake sale?

Ferrovial expects to recognize a total profit of 2,500 million euros at 2024 year-end, including 2,000 million euros from the sale and 500 million euros from revaluation of retained stake.

What percentage stake does Ferrovial retain in Heathrow after the 2024 sale?

After the December 2024 transaction, Ferrovial retains a 5.25% stake in FGP Topco, Heathrow Airport Holdings' parent company.

Who are the new major shareholders in Heathrow after Ferrovial's stake sale?

After the transaction, Ardian holds approximately 22.6% and PIF holds approximately 15.0% of FGP Topco, Heathrow's parent company.