TotalEnergies In Advanced Talks To Invest $700 Mn In Adani Green Energy Projects
The French oil company, TotalEnergies is reportedly engaged in high-level talks to invest approximately USD 700 million in Adani Green Energy's renewable energy initiatives, marking a potential milestone agreement between the two entities.
This potential investment is part of TotalEnergies' strategic efforts to bolster its clean energy portfolio. Earlier this year, Hindenburg Research in a report had made allegations of improper dealings and the use of tax havens by Adani Group, leading to a significant depreciation in the value of its companies' shares, amounting to roughly USD 150 billion.
The Adani Group's shares have gradually rebounded in value, following an investigation by a Supreme Court-appointed panel, which found "no regulatory failure" related to price manipulation in Adani Group stocks.
As of June 30, TotalEnergies held a substantial stake in Adani Green, approximately 20%, and in Adani Gas, totalling 37.4 per cent, as per stock exchange data. Based on Thursday's closing figures, this investment was valued at approximately USD 3.7 billion.
Notably, TotalEnergies' CEO, Pouyanne, disclosed last year that the initial stake in Adani Green was acquired for USD 2 billion, a value he estimated to have surged to USD 10 billion by late 2022.
In a related development, TotalEnergies in February confirmed that it had not yet finalised a contract, previously announced last year, to extend its partnership with Adani for the production of green hydrogen.
Meanwhile, Adani Green Energy obtained approval in July to raise a significant sum of USD 1.48 billion through a qualified institutional placement.
