Renta 4 | According to information published in the press, the secretary general of the Socialist Party of Galicia has confirmed that the central government will deny Altri the electrical substation and grid connection it requires for the construction of the new plant in Palas de Rei (Lugo). This refusal comes on top of its exclusion from the Perte decarbonisation programme and the €250 million in European aid requested by the company.
Assessment: Negative news that we believe quasi-definitively confirms the unviability of the Gama project for the construction of a cellulose plant for textile fibres.
We do not expect a significant impact on the share price, as the market has been reducing the project’s chances of success for some time and even the company, given the politicisation of the issue, currently seems to be giving priority to the development of AeoniQ.
We reiterate our HOLD recommendation and have the P.O. ‘Under Review’ (previous €6.8/share).
