MADRID (dpa-AFX) - Spanish transport infrastructure company Ferrovial SA (FRRVF.PK, FRRVY.PK) on Monday said it has agreed to sell 5.88 percent indirect stake in FGP Topco Ltd., parent company of British airports operator BAA Ltd., for 280 million pounds or 325 million euros. Ferrovial shares are currently trading around 5 percent higher in Madrid.
Ferrovial, which indirectly holds 55.87 percent stake in BAA, said it will sell the minority stake to two investment vehicles managed by Alinda Capital Partners. Following the sale, Chris Beale, Managing Partner of Alinda, will join the board of FGP Topco Ltd and the board of BAA.
The closing of the unconditional sale is expected to take place by the end of October. Ferrovial said it will use the deal proceeds on other new infrastructure and services projects.
Further to the sale, Ferrovial will hold an indirect stake of 49.99 percent in BAA, which operates six British airports, including Heathrow Airport. The company said it will maintain its position as strategic partner and underscores its commitment as a long term investor in BAA.
It was in 2006 that a Ferrovial-led consortium, ADI Limited, acquired BAA . The remaining shareholders are Britannia Airport Partners LP with a 26.48 percent stake, and GIC Special Investments with a 17.65 percent.
BAA currently operates Heathrow and Stansted airports in London, Glasgow, Edinburgh and Aberdeen airports in Scotland, and Southampton airport in the south of England. For the first half, the company reported 11.5 percent increase in revenue to 1.36 billion euros, and 25.7 percent climb in EBITDA to 633 million euros. During this period, a total of 51 million passengers used BAA's airports, a 7.8 percent increase in like-for-like terms.
Ferrovial Chief Executive Officer Íñigo Meirás said, 'This sale is in line with our strategy to establish a market valuation of our assets. Heathrow is one of the best infrastructure assets in the world. After this operation, we would like to underline our commitment as a long term investor in BAA remains in place.'
Ferrovial is currently trading at 8.91 euros, up 0.39 euros or 4.52 percent, on a volume of 6.6 million shares in Madrid.
In the U.S., FRRVY.PK closed Friday's trading at $11.23, up $0.18 or 1.63 percent.
Copyright RTT News/dpa-AFX
