PIF buys 15pc stake in Heathrow, may acquire stake in PGA Tour

RIYADH: Saudi Arabia’s Public Investment Fund announced on Thursday that it has bought a 15 per cent stake in London’s Heathrow airport. Earlier media reports also revealed that the fund is closing in on an acquisition of a share of PGA Tour Enterprises.

“PIF is pleased to be investing in Heathrow Airport, a vital U.K. asset and a world-class airport,” Turqi Al-Nowaiser, Deputy Governor and Head of International Investments said in a press release that revealed that the fund acquired about 15 per cent of FGP TopCo, which is the holding company of Heathrow Airport Holdings, Ltd.

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“We believe in the importance of infrastructure as a key sector in supporting the transition to net zero. Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.”

– Turqi Al-Nowaiser, Deputy Governor and Head of International Investments

The statement reveals that the move is “in line with its efforts to support important sectors and businesses as long-term partners.”

PIF have a number of other international investments, including Accorinvest Group, Arab Bank (Switzerland), French Private Equity Investment, Russian Direct Investment Fund, Investment program in Brazil, Blackstone, Magic Leap Incorporated Company, Uber Technologies Incorporations, Reliance Retail, Lucid Motors Inc., and Jio Platforms Ltd., and Softbank Group Corp.

PGA TOUR

Earlier, Bloomberg reported that the PIF was also close to acquiring a six per cent stake in PGA Tour Enterprises. The Wall Street Journal stated that the investment would be worth $1.5 billion.

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The acquisition would signify an alliance between the group behind LIV Golf, Saudi Arabia’s own tour that has poached many of the world’s biggest golfing stars, and the PGA Tour. This is the latest move in Saudi Arabia’s efforts to improve their image through sports. The Kingdom already hosts the world’s biggest boxing matches, has the Saudi Pro League which features the world’s most prolific football stars, owns the aforementioned rival to the PGA Tour, and recently hosted the Indian Premier League (IPL) auction.