Qatar buys 20% stake in BAA

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Qatar Holding will buy an indirect minority stake in BAA from Britannia Airport Partners, Ferrovial and GIC for £900 million ($1.4 billion).

The subsidiary of the Qatari sovereign wealth fund Qatar Investment Authority will buy 20% of FGP Topco, which owns BAA, it says in a statement today. The sale is split between 5.63% from Britannia, 10.62% from Ferrovial and 3.75% from GIC.

Qatar says that the deal will further diversify its investments in the infrastructure sector and maintains that there is "there is long-term fundamental strength" in the UK economy, in a statement.

BAA owns Aberdeen, Glasgow, London's Heathrow and Stansted, and Southampton airports.

"The sale of this stake in BAA is part of Ferrovial's strategy of establishing a market valuation of our assets and improving the structure of our investment portfolio," says Inigo Meiras, chief executive of Ferrovial, in a statement. "After this transaction we wish to reaffirm our role as an industrial investor in BAA."

The deal is subject to regulator approval.

Barclays is financial adviser to Qatar.