CIC buys stake in Heathrow Airport Holdings

Ferrovial sold its 5.72% stake in the Heathrow parent company FGP Topco to Stable Investment Corporation, a wholly owned subsidiary of CIC for GBP257.4 million. As part of the same transaction, and at the same price per share, Stable acquired the other 4.28% from other shareholders for GBP192.6 million.

Following the deal Ferrovial will continue to be an industrial partner in Heathrow with a reduced 33.65% stake. Government of Singapore Investment Corporation (GIC) and Alinda will also remain shareholders in FGP Topco.

Stable will gain board representation at FGP Topco and Heathrow Holdings. Britannia Airport Partners,

"We will continue to work with the new shareholders and with existing shareholders to ensure that Heathrow Airport Holdings retains its position as one of the best infrastructure assets in the world," said Inigo Meiras, CEO of Ferrovial, in a statement.

Last year market volatility saw CIC post a 4.3% loss on its overseas investments, its worst performance since the sovereign wealth fund was set up in 2007. This came after CIC had doubled its exposure to private equity, direct investments and hedge funds. That same year, the $482 billion fund saw its net income reach $48.4 billion, down 6.1% year-on-year.

In November last year CIC announced it would commit funds to improving infrastructure in developed countries, starting with the UK.

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• Topics
• Europe
• Greater China
• Infrastructure
• Renminbi fund
• Infrastructure
• GPs
• China
• CIC
• Infrastructure