October 10, 2011 / 6:30 AM / 8 years ago

UPDATE 3-Ferrovial cuts BAA stake, no plans to sell more

* Cuts stake to 49.99 percent from 55.87 percent

* Sells stake for 325 million euros

* Deal to close by end-October

* Ferrovial shares up 5.5 pct

By Jonathan Gleave and Rhys Jones

MADRID/LONDON, Oct 10 (Reuters) - Spanish infrastructure firm Ferrovial has cut its stake in UK airport operator BAA to just below 50 percent after selling a 6 percent share, removing BAA’s debts from its balance sheet.

Ferrovial said on Monday that it had agreed to sell 5.88 percent of its BAA investment vehicle, FGP Topco, to U.S. infrastructure investment group Alinda Capital Partners for 325 million euros ($435 million), valuing BAA at 5.52 billion euros.

“It’s been a good sale at a great price but we don’t plan to sell any more (of BAA) at the moment,” a spokesman for Ferrovial said.

The sale means Ferrovial’s stake in BAA will drop to 49.99 percent from 55.87 percent, the Spanish company said, allowing it to deconsolidate BAA’s debt from its balance sheet.

Following the sale, expected to close by the end of this month, Ferrovial’s accounts will show about 5.19 billion euros of debt against the current 19.75 billion euros, the spokesman said.

Ferrovial shares in Madrid, which have risen 15 percent in 2011, were up 5.5 percent at 8.9 euros by 0846 GMT, valuing the company at around 6.2 billion euros.

“This deal should be positive for the share price as it unlocks hidden value, gives Ferrovial greater flexibility and may make it easier to capture other investment opportunities,” said Societe Generale analyst Victor Acitores.

Ferrovial has been considering selling a stake of up to 10 percent in BAA for around a year. It put the stake up for sale last October in a move to trim its debt.

BAA owns London’s Heathrow — Europe’s busiest airport — as well as Southampton and Stansted in England and Glasgow, Edinburgh and Aberdeen airports in Scotland.

Britain’s Competition Commission (CC) last week told BAA that it must sell one of its Scottish airports before it disposes of London Stansted airport.

The CC’s decision followed a two-year battle between BAA and the CC after the CC ruled in 2009 that BAA exerted a dominant hold on British airports and told it to sell Gatwick and Stansted airports and one of its Scottish airports.

BAA last month said it would seek a judicial review of the UK competition watchdog’s ruling requiring it to sell off Stansted and either Glasgow or Edinburgh airport in Scotland.

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