Blackstone Buys into AGS Airports: Stocks Soar on Strategic Investment

On March 31, Blackstone Group announced that its infrastructure strategy division has agreed to acquire a 22% minority stake in AGS Airports, a UK airport group, for £235 million. AGS Airports operates Glasgow and Aberdeen airports in Scotland, as well as Southampton Airport in England, serving over 11 million passengers annually.

Following this transaction, AviAlliance will maintain its position as the majority shareholder of AGS Airports, holding 78% of the shares. AviAlliance is known as a leading global investor and operator of airports and is wholly owned by PSP Investments, one of Canada's largest pension investment managers.

Greg Blank, CEO of Blackstone's Infrastructure Strategy, underscored the emphasis on transportation infrastructure as a key investment area for Blackstone, noting the consistent global demand for leisure travel. AGS's diverse airline partnerships and recent capital investments to upgrade airport facilities set the stage for accommodating larger aircraft, opening new routes, and increasing passenger capacity.

PSP Investments' Head of Global Infrastructure, Sandiren Curthan, welcomed Blackstone as a minority shareholder. Both PSP and Blackstone are positioned as long-term investors, ready to provide capital support for AGS's future development.

In a separate development, Blackstone is reportedly mulling over joining a consortium led by Susquehanna International Group and General Atlantic to raise funds to acquire TikTok's U.S. operations. This move aims to spin off TikTok's U.S. business into a separate entity, reducing Chinese shareholders' ownership in the new entity to below 20% as required by U.S. law to avert a potential ban.

This strategic maneuver by Blackstone reflects its continued adaptability and navigation within the intricate web of geopolitics and global business. As digital sovereignty laws tighten across both China and the United States, Blackstone's engagement in such transactions underscores the company's pursuit of growth and resilience amidst evolving regulatory landscapes.