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Court Rejects Asertis Claim; Parent Equity Sells-Off, Abertis Curve Steady

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  • We bulleted two weeks ago on a BBVA trade recommendation to buy Abertis Infraestructuras May 26s
  • The bullet cited the BBVA note that a potential positive catalyst for Abertis could arise from the EUR 4.3bn AP-7 toll road claim in litigation against the Spanish Gov’t.
  • We note that the Spanish Supreme Court yesterday rejected the claim. Abertis is “exploring potential avenues of appeal to safeguard its legitimate interests”.
  • This ruling entails a non-cash loss net of provisions of ~ EUR 250mn and a EUR ~65mn cash inflow based on certain other compensatory measures. They see the net impact on 2023 results as a a non-cash loss of EUR ~29mn.
  • The dispute arose from a 2006 agreement between Acesa (Abertis' subsidiary) and the Spanish government regarding the AP-7's expansion, with Acesa claiming a substantial under-compensation by the state.
  • The court's decision refutes Acesa's interpretation of the compensation formula in the 2006 agreement, particularly rejecting the notion of a traffic volume guarantee for the concessionaire.
  • Parent ACS’ shares sold-off into the close, ending -10% before rising 1% so far today. Abertis. However, both the ACS and Abertis curves shrugged off the news and have mostly tightened 1-2bps vs. midswaps since Friday’s close.
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