Bankinter | Ferrovial has reached an agreement with Carlyle to buy its stake in the new Terminal 1 at JFK airport (New York). It will acquire 96% of the vehicle through which The Carlyle Global Infrastructure Fund holds 51% of the concession. Ferrovial’s investment will be 1.140 billion dollars. The accord is subject to certain suspensive conditions and the company will provide more details on 9 June at 18:00h. The little we know for the time being is that it is a project which was approved at end-2021. It will imply an investment of 9.5 billion euros to unify and modernise the old terminals 1, 2 and 3 at JFK.
Bankinter analyst team’s view:
Good news for Ferrovial. It’s still early to determine the possible impact on valuation, but the operation makes strategic sense for Ferrovial whose goal is to increase its exposure to concessions. The company has a strong investment capacity, particularly after the sale of the services division. We forecast it will close 2022 with a net cash position at the parent company of over 2 billion euros, so a capital hike would not be required. We maintain our Buy recommendation.
