Intermoney | Ferrovial (Hold, PO 32) announced last Friday, before the market close, that the Group, together with other Heathrow shareholders (accompanying shareholders), has reached an agreement to sell part of its stakes to the PIF and Ardian funds. Specifically, these two entities will acquire 37% of the London airport in exchange for £3,259 million, or some €3,880 million. Ferrovial will thus sell almost 20% of Heathrow’s capital for around €2.010 billion, while retaining 5.25%. Ardian and PIF will hold shares representing approximately 22.6% and 15%, respectively, through separate vehicles.
In November last year, Ferrovial had reached an agreement to sell its entire stake in Heathrow (25%) to Ardian and PIF for just under £2.4 billion, but full tag-along rights meant that other shareholders were allowed to apply.
Assessment: This agreement is also subject, in turn, to the accompanying agreements, so Ferrovial itself warns that it is not definitive. However, it is likely that there will be no problems, as all those who exercised their initial right of sale in November should have seen their demands satisfied last Friday. What is certain is that Ferrovial has had to assume a reduction in the sale price of -8% proportionally, without being able to consider the 5.25% of Heathrow that it holds as strategic, and it would not be surprising if in the near future the Group disposes of this stake. The sale price is approximately 1.2x RAB. We will adjust our estimates for 2024e, as we had assumed the sale of the entire stake at the initial price this year. We will not change our valuation of Ferrovial due to this particular event.
