News / Ferrovial sells a 8.65% stake in Heathrow Airport to Universities Superannuation Scheme (USS)
Ferrovial sells a 8.65% stake in Heathrow Airport to Universities Superannuation Scheme (USS)
Ferrovial has reached an agreement to sell 8.65% of FGP Topco Ltd., the holding company which owns Heathrow Airport Holdings Ltd. (HAH), to the Universities Superannuation Scheme Limited (USS) for £392 million, equivalent to €463 million. The transaction is expected to complete on 24 October 2013 upon the receipt of funds. Ferrovial's indirect stake in HAH will be 25% as a result of this transaction.
Áñigo Meirás, CEO of Ferrovial said:
"This sale of a stake in HAH is a further part of Ferrovial's investment diversification strategy. Following this deal, we reiterate our role in HAH as the main shareholder and industrial partner in the long term.""We are pleased with the addition of a British pension fund to the group of international investors who are already part of Heathrow. Having long-term investors of the quality of the USS will only strengthen Heathrow. HAH now has investors based in Europe, North America, the Middle East and Asia, including sovereign wealth funds from Qatar, China and Singapore."Universities Superannuation Scheme was established in 1975 as the principal defined benefit pension scheme for universities and other higher education institutions in the UK. It has over 300,000 scheme members across nearly 400 institutions and is one of the largest pension schemes in the UK, with total fund assets of approximately £40 billion. The transaction was arranged by USS Investment Management Limited (USSIM), a wholly owned subsidiary of USS and its principal investment manager and advisor, which will manage the investment on USS's behalf.A consortium including Ferrovial acquired BAA Ltd., now renamed as HAH, in June 2006. HAH owns Heathrow (in London), Glasgow and Aberdeen airports (in Scotland) and Southampton airport (in southern England). In the first six months of 2013, those airports handled 40.2 million passengers.In October 2012, Ferrovial sold a 5.72% of FGP Topco Ltd to China Investment Corporation, for £257.4 million pounds, equivalent to €319.3 million. Later, in December 2012, Ferrovial sold a 10.62% stake in FGP Topco Ltd. to Qatar Holding LLC for £478 million. Qatar Holding added a 5.63 % stake from Britannia Airport Partners and a 3.75 % stake from GIC Special Investments Pte Ltd.to complete a 20 % stake.In all transactions, buyers paid around £45 million for a 1% stake in the company.The other shareholders of FGP Topco are Britannia Airport Partners, a vehicle controlled by Canadian pension fund manager Caisse de dépôt et placement du Québec, the Singapore government-owned Baker Street Investment and Alinda Airports UK.