Heathrow shareholders exercise right of first refusal and complicate sale of Ferrovial’s 25% stake in Heathrow

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Bankinter| Some Heathrow shareholders have exercised their right of first refusal. The sale of the 25% stake held by Ferrovial has run into difficulties. Some Heathrow shareholders have exercised their right of first refusal on 35% of the capital. They are Caisse de Dépôt et Placement du Québec (12.62%), the Singapore sovereign wealth fund GIC (11.2%) and Australian Retirement Trust (11.18%). Although the agreement to sell the 25% stake held by Ferrovial is still in force and options to move forward are being analysed, the company itself acknowledges that there is no certainty that the transaction will be completed.

Opinion of Bankinter’s analysis team:

Bad news for Ferrovial, as the probability of selling its 25% stake in Heathrow to Ardian and the Saudi sovereign wealth fund (The Public Investment Fund) for €2.72 billion is considerably reduced. In order to close the deal, they would have to find a buyer for the other 35% of the capital at the same price, i.e. with the capacity to invest an additional €3.85 billion. This news could weigh on Ferrovial’s share price in the coming weeks, although the outlook for 2024 is favourable, with: (i) moderate economic growth supporting demand; (ii) inflation still high (>2%) allowing rents to increase; and (iii) interest rate cuts, probably at the end of the year.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.