ACS makes capital gains of 1.9 bln euros on Fenosa

MADRID, July 31 (Reuters) - Spanish construction firm ACS (ACS.MC) said on Thursday net capital gains from the sale of its 45.3 percent stake in Union Fenosa UNF.MC to Gas Natural (GAS.MC) reached 1.859 billion euros ($2.90 billion).

ACS said total net returns from the stake, including dividends received over the period since September 2005, were 2.729 billion euros.

On Wednesday, Gas Natural said it had agreed to buy ACS's stake in Fenosa for 7.592 billion euros in an all-cash deal.

Analysts said ACS could earmark part of the funds raised to cut its 18 billion euros debt pile, as well as to increase its stake in Iberdrola (IBE.MC), which now stands at 12 percent.

ACS said total group debt reached 18.442 billion euros at the end of June, but that after the Fenosa stake sale, pro-forma net debt would drop to 5.164 billion euros.

(Reporting by Judy Macinnes)