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PIF Invests in Egypt, Has Eyes on Heathrow

PIF Invests in Egypt, Has Eyes on Heathrow

Wednesday, 10 August, 2022 - 03:00
Heathrow was the world's fifth busiest airport in July. Reuters

The Saudi Egyptian Investment Co., a newly launched investment firm of the Kingdom’s Public Investment Fund, has agreed to buy 25 percent shares of Misr Fertilizer Production Co., Egyptian sources said Tuesday.

Meanwhile, Spain's Ferrovial is looking at options for its 25% stake in London's Heathrow, two sources told Reuters, and has held preliminary talks with external advisers on the future of its holding in Britain's biggest airport.

The early stage discussions come amid interest in Ferrovial's stake from private equity firm Ardian, which has held talks with its own advisers on a possible joint proposal with Saudi Arabia's Public Investment Fund (PIF), these sources and another person familiar with the matter said.

Ferrovial has yet to take a final decision and the discussions may not result in a sale, all the sources said.

Ferrovial and Ardian both declined to comment while PIF did not immediately respond to a request for comment.

Ferrovial's Heathrow holding is worth about 1.6 billion euros ($1.63 billion), Citi analysts said on Tuesday, commanding an overall valuation of 26 billion euros including debt for the British airport.

Heathrow, which Aviation data firm OAG said was the world's fifth busiest airport in July, was hard hit by coronavirus lockdowns, but raised its 2022 traffic forecast to 54.4 million passengers in June after a travel rebound.

Last month Heathrow, like some other airports in Europe, asked airlines to stop selling tickets for summer departures and capped passenger numbers to limit queues, baggage delays and cancellations as it struggled with pent-up demand.

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