Australian investment house Macquarie is assembling the firepower to buy out several of Heathrow Airport’s existing backers in a move that could trigger a fierce tussle for control of Britain’s pre-eminent travel hub.
The former owner of Thames Water is weighing the purchase of a multi-billion pound stake in Heathrow as the airport’s existing owners scramble for an exit.
With as much as 60 per cent of Heathrow’s shares likely to change hands, some of the world’s wealthiest investment houses are circling.Credit: FRANK AUGSTEIN
The potential change of ownership has been triggered by the decision of Spanish construction outfit Ferrovial to offload its shares in Heathrow after 17 years as its largest investor. Under the terms of a complex agreement, Ferrovial’s planned departure provides an opportunity for other shareholders to make their escape too.
With as much as 60 per cent of Heathrow’s shares likely to change hands, some of the world’s wealthiest investment houses, including Macquarie, are circling the airport.
A source involved in the talks said: “Heathrow is a great asset. It must be one of the blue-riband assets in infrastructure and in airports.”
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Ferrovial has agreed to sell its 25 per cent stake to Saudi Arabia’s sovereign wealth fund and Ardian, one of Europe’s biggest private equity houses, in a £2.4 billion ($4.6 billion) deal that values Heathrow at just shy of £10 billion ($19 billion).
Ardian is also understood to be trying to raise the capital to purchase the stakes of three other shareholders that are looking to exit. They are Canadian pension fund CDPQ, Singapore’s sovereign wealth fund GIC, and the UK’s Universities Superannuation Scheme. “Tag-along” rights allow them to find a buyer for their pieces of Heathrow at the same price.
However, Macquarie is poised to leapfrog Ardian and become the linchpin in the discussions. City sources said the investment bank, which is based in Sydney and manages nearly half a trillion pounds worth of assets around the world, is considering a range of options including mounting a competing bid for the entire 60 per cent stake that is on the block.
