TSK shares drop following €81 million bank guarantee ruling

Shares of the Spanish engineering firm TSK fell nearly 6% following a ruling by the UK Commercial Court. The court ordered Banco Santander to immediately pay approximately $90.7 million (€81 million) in bank guarantees related to the Temane Combined Cycle Power Plant project in Mozambique.

The dispute arose after TSK terminated its contract for the 450 MW plant in April 2025, citing force majeure due to the prolonged effects of Cyclone Filipo. The project promoter, Central Térmica de Temane (CTT), rejected the termination and requested the execution of the guarantees from Santander.

While a court in Móstoles, Madrid, had previously granted precautionary measures to freeze the funds, the UK ruling overrides that defense. TSK has stated it is not a party to this specific judicial proceeding and has initiated separate arbitration through the International Chamber of Commerce in London, with a resolution expected between late 2027 and early 2028.