Ferrovial begins sale of BAA share

Spanish infrastructure group Ferrovial has started a process for a possible sale of a minority stake in Heathrow owner BAA.

The company aims to sell off 10% of the airports operator.

It comes a week after BAA lost an appeal against a ruling that it must spin off Stansted as well as either Glasgow or Edinburgh airport.

The Competition Commission deemed the company’s dominance of air traffic into and out of Scotland and London to be unacceptable.

Ferrovial currently holds, indirectly, 55.87% of BAA, the rest of the equity being held by Britannia Airport Partners LP (26.48%) and GIC (17.65%).

CEO Íñigo Meirás said: “We have taken the decision to go to the market to sell a minority stake of BAA’s capital, though the completion of any sale will depend on the offers received.

“The process that we have initiated 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 and its resilience has been proven by its performance in the current economic circumstances.

“We would like to underline that our commitment as a long term investor in BAA remains in place.”

Ferrovial intends to use the proceeds of the transaction on other new infrastructure and services projects and to pay down corporate debt.

A consortium formed by Ferrovial acquired BAA in 2006.