Banc Sabadell : On 5 July, the Audiencia Nacional (Spain’s High Court) dismissed the appeal lodged by Escal UGS -the company that developed the Castor project, 67% owned by ACS) against the repayment of €210 million to the gas system (initial €195 million + interest generated-, for the settlements received in relation to the Castor project, according to press reports.
Assessment: News with a negative bias, although with limited impact insofar as the appeal was known, the result was within the realm of probability and we understand that the resolution can still be appealed. Furthermore, even in the event of a final ruling, it is not clear to what extent this will mean a cash outflow for ACS, given that it is a subsidiary in which it owns 67% and which filed for insolvency in 2019. In any case, the proportional part of its share of the required amount represents -1.6% of ACS’s capitalisation. The news was known on Thursday during the session and ACS ended up dropping -0.58% (vs -1% the IBEX).