China Investment Corporation buys 10-per-cent stake in London's Heathrow Airport
Thursday, 01 November 2012
BEIJING: China Investment Corporation, a subsidiary of China's sovereign wealth fund, has managed to buy a 10 % stake in London's Heathrow airport for about 560 million euros (726 Million Dollars), the company announced here on Thursday.
"CIC International Co Ltd has, through one of its wholly-owned subsidiaries, acquired a 10 per cent stake in Heathrow Airport Holdings Ltd, previously known as BAA Ltd," CIC said in a brief statement relayed by China's Xinhua news agency today.
Spain's Ferrovial said earlier it agreed to sell 5.72% of FGP Topco Ltd, a holding company which owns Heathrow Airport Holdings, to CIC's subsidiary Stable Investment Corporation.
The sale of Ferrovial's shares was valued at 319.3 Million euros, while CIC-owned Stable Investment acquired another 4.28% of shares in FGP Topco, worth 238.9 Million euros, from other shareholders as part of the same deal.
Ferrovial said its stake in Heathrow Airport Holdings would fall to 39.37% after the transaction. (QNA)