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.
