Abu Dhabi fund acquires stake in UK's Gatwick airport

08 Feb 2010

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The Abu Dhabi Investment Authority (ADIA), the world's largest sovereign wealth fund, said on Friday that it has acquired a stake in Britain's Gatwick airport from US-based investment fund Global Infrastructure Partners (GIP).

ADIA, which is believed to hold an estimated $500-700 billion in assets, did not reveal the size or the value of the acquisition, news agency reports citing sources close to the deal, said ADIA has acquired 15 per cent stake for around £125 million ($196.4 million). (See: Abu Dhabi wealth fund to acquire 15-per cent stake in Gatwick airport)

ADIA's investment in Gatwick airport follows South Korea's state pension fund, the National Pension Service (NPS), acquiring a 12-per cent stake last week in Gatwick airport at around £100 million. (See: South Korea's pension fund to acquire 12-per cent stake in Gatwick airport)

Last month, the media had widely reported that ADIA had teamed up with a Macquarie infrastructure fund and Canada Pension Plan to bid for the UK electricity distribution business of French energy giant Électricité de France (EDF).

EDF had been planning to sell its electricity distribution business in the UK in order to cut the mountain of debt it has built up due to the hefty acquisitions made in the US and the UK last year. (See: EDF mulls selling UK electricity distribution business)

New York-based GIP, the $5.64-billion infrastructure fund promoted by Credit Suisse and General Electric, had acquired Gatwick Airport, Britain's second busiest airport, from BAA, in December, for £1,455 million in an auction.

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