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China sovereign fund owns 10% of Heathrow
By By Richard Fu |
November 1, 2012, Thursday
|
Online Edition
Online Edition
CHINA Investment Corp, the sovereign wealth fund, has bought a 10 percent stake in the operator of London's Heathrow Airport for 450 million pounds (US$726 million).
Spanish construction group Ferrovial said yesterday it sold 5.72 percent of FGP Topco, the holding company that owns Heathrow Airport Holdings, to Stable Investment Corp, a unit of CIC, for 257.4 million pounds.
Stable also acquired shares from other shareholders of FGP Topco for 192.6 million pounds, bringing its holding to 10 percent, Ferrovial said.
CIC was created in 2007 to enhance returns on China's foreign exchange reserves, the world's largest. President Gao Xiqing said at a forum in Shanghai last weekend that Chinese companies don't always have to seek a controlling stake in overseas acquisitions as this could stoke political concern.
CIC usually limits its stake purchases to 10 percent, Gao said.
"This sale of a stake in Heathrow Airport Holdings Ltd is a further part of Ferrovial's investment diversification strategy. Following this deal, we reiterate our role in Heathrow Airport Holdings Ltd as the industrial partner," Ferrovial Chief Executive Inigo Meiras said in a statement, adding the deal will improve the company's liquidity and financial flexibility.
Following the transaction Ferrovial holds an indirect stake of 44.27 percent of Heathrow Airport. But its indirect stake will be further reduced to 33.65 percent once European competition authorities approve Qatar Holdings' purchase of a stake in FGP Topco, the Madrid-based company said.
Spanish construction group Ferrovial said yesterday it sold 5.72 percent of FGP Topco, the holding company that owns Heathrow Airport Holdings, to Stable Investment Corp, a unit of CIC, for 257.4 million pounds.
Stable also acquired shares from other shareholders of FGP Topco for 192.6 million pounds, bringing its holding to 10 percent, Ferrovial said.
CIC was created in 2007 to enhance returns on China's foreign exchange reserves, the world's largest. President Gao Xiqing said at a forum in Shanghai last weekend that Chinese companies don't always have to seek a controlling stake in overseas acquisitions as this could stoke political concern.
CIC usually limits its stake purchases to 10 percent, Gao said.
"This sale of a stake in Heathrow Airport Holdings Ltd is a further part of Ferrovial's investment diversification strategy. Following this deal, we reiterate our role in Heathrow Airport Holdings Ltd as the industrial partner," Ferrovial Chief Executive Inigo Meiras said in a statement, adding the deal will improve the company's liquidity and financial flexibility.
Following the transaction Ferrovial holds an indirect stake of 44.27 percent of Heathrow Airport. But its indirect stake will be further reduced to 33.65 percent once European competition authorities approve Qatar Holdings' purchase of a stake in FGP Topco, the Madrid-based company said.
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