China Investment Corp buys 10 % in Heathrow Airport Holdings for $726 million

01 Nov 2012

1

China Investment Corporation (CIC) today said that it has acquired a10-per cent stake in Heathrow Airport Holdings, operator of London's Heathrow airport, for £450 million ($726 million).

Under the deal, CIC's subsidiary, Stable Investment Corp will buy a 5.7 per cent stake in FGP Topco Ltd from Spanish infrastructure firm Ferrovial for £257.4 million. FGP Topco is the holding company which owns Heathrow Airport Holdings, previously known as BAA Ltd.

Beijing-based CIC, the $410-billion sovereign wealth fund, will buy the remaining 4.3 per cent stake from other shareholders of FGP Topco for £192.6 million.

Following the deal, Ferrovial's stake in Heathrow Airport Holdings will drop to about 44 per cent.

The deal comes two months after Qatar sovereign wealth fund Qatar Holdings acquired a 10.6 per cent stake in FGP Topco, for $746 million.

Ferrovial and its consortium partners Britannia Airport Partners and Singapore's GIC intend to sell a further 10 per cent, to Qatar Holding, taking the total deal value to $1.4 billion. The deal is currently under review by the European Union regulator.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more