PIF Inks Partnership with Brazil’s Patria
Saudi Arabia’s Public Investment Fund (PIF) has inked a partnership agreement with Brazil’s “Patria”. The deal, worth $1.2 billion, focuses on a Brazilian infrastructure project.
Partnership Details
“This collaboration includes a 30-year concession for operating toll roads. This will be through capital investments from both PIF and Patria for investments,” said PIF.
PIF’s Global Investments
It is worthy to mention that PIF, alongside France’s Ardian, acquired a 25% stake in London’s Heathrow Airport for £2.4 billion. Additionally, PIF struck a deal to buy a 10% share in FGP TopCo, Heathrow Airport’s holding company.
Under this deal, PIF acquires 10% of FGP TopCo. Ardian will obtain a 15% stake, managing these through their infrastructure funds. PIF and Ardian will invest independently.
Also the Public Investment Fund (PIF) announced striking an agreement with Ferrovial SA to purchase a 10% stake in FGB Topco, the holding company for Heathrow Airport (Heathrow Airport Holdings Limited).
On Tuesday, Ferrovial SA announced that it will sell its 25% stake in Heathrow Airport’s parent company.
Under the agreement, the Public Investment Fund will acquire a 10% stake in FGB Topco. Ardian, a france-based private equity investment company, will acquire a 15% stake in FGB Topco, through the infrastructure funds it manages.
The Public Investment Fund and Ardian will invest separately.
Conditions of the Deal
The deal is subject to specific conditions that include priority rights to purchase and rights to participate in the sale. The current shareholders of FGB Topco can exercise these rights in accordance with the provisions of the shareholders agreement, and in line with the company’s system and procedures. In addition, there has to be other approvals from the relevant and concerned parties.
Importance of This Investment
The Public Investment Fund is looking forward to the opportunity to invest in Heathrow Airport. It is considered one of the most important airports in the world, as it enjoys a strategic and global position.
The Public Investment Fund’s investment in Heathrow Airport is in line with its strategy to support sectors and companies through long-term investments.
Heathrow Airport is also one of the busiest airports in the world. It connects the United Kingdom to all its trading partners around the world to support and stimulate economic growth globally.
Heathrow Airport
The Airport, formally known as London Airport, is the main international airport in London. Out of six international airports in the London airport system, Heathrow is the largest. It covers an area of 7.74 square miles, and was later on expanded, adding two east-west runways .
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