QATAR/UK. Qatar Holding LLC announced yesterday that it has agreed terms with Ferrovial S.A. and other existing investors to acquire a 20% indirect shareholding in BAA Ltd (BAA).
BAA operates Heathrow and Stansted airports in London, Glasgow and Aberdeen airports in Scotland, as well as Southampton Airport in southern England. FGP Topco Ltd, a consortium formed by Ferrovial, acquired BAA in 2006.
The transaction is conditional upon approval of European Union competition authorities and closing is expected to take place before the end of the year.
The agreed terms will see Qatar Holding enter the owners’ consortium with a 20% shareholding, and commensurate reductions in the shareholdings of Ferrovial and other investors who participate in this transaction.
In a statement, Qatar Holding said it maintains its view that the UK remains an attractive investment destination and there is long-term fundamental strength in the British economy.
It added: “This acquisition is a key element in our exposure to the infrastructure sector, and help to further diversify Qatar Holding global investment portfolio. Qatar Holding looks forward to working together with our fellow shareholders and the management team of BAA to enhance the company’s industry leadership and create sustainable value.”
Ferrovial is the indirect owner of 49.99% of BAA Ltd. Under the terms of the deal it will sell 10.62% of FGP Topco Ltd to Qatar Holding LLC for £478 million (US$723.5 million).
As part of the same transaction, other shareholders of FGP Topco will sell a 9.38% share at the same price per share, bringing the total deal valuation to £900 million (US$1,362 million). Ferrovials’s diluted indirect stake in BAA will be 39.37%.
ABOUT QATAR HOLDING LLC
Qatar Holding LLC, a wholly-owned subsidiary of Qatar Investment Authority, is a global investment corporation. Key investments include world-famous retailer Harrods Group and Lagardère (parent company of LS travel retail) as well as Agricultural Bank of China, Barclays plc, Canary Wharf Group (via Songbird Estates), Credit Suisse Group, Hassad Food Company, Iberdrola SA, J Sainsbury plc, London Stock Exchange,, Porsche, Qatar Exchange, Qatar Telecom, Qatar National Bank, Santander Brasil and Volkswagen AG.
