Ferrovial rises on talk of Dufry interest

Gavin Lipsith

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The Spanish group’s share price rose on Friday, boosted by speculation that Dufry Group is interested in acquiring BAA retail subsidiary World Duty Free

Spanish conglomerate Grupo Ferrovial shares were driven up on Friday (November 24) amid speculation of Swiss retailer Dufry Group’s interest in acquiring World Duty Free (WDF) from the Ferrovial-led ADI consortium, which acquired WDF parent company BAA in August.

Investment bank BPI cited Spanish press reports that Ferrovial could sell WDF “as it continues the process of divesting non-strategic assets”. The news follows BAA’s insistence that WDF has been declared a core UK asset in Ferrovial’s strategic review of BAA.

BPI said: “We believe [a sale to Dufry would be] positive not only because it would improve the equity internal rate of return of Ferrovial's investment but also because it would allow ADI to redeem the more expensive loan tranches.”

Analysts also commented on the success of Ferrovial’s Swissport unit, in particular its new contract to provide handling services for Ryanair at Madrid Barajas airport from next February, as well as its expansion into China, Japan and India.