TotalEnergies on Monday said that it will not make any new investments in the Adani group until “the accusations against the Adani group individuals and their consequences have been clarified”
Adani Green Energy (AGEL) rejected claims made by media reports that the company’s shares fell as TotalEnergies, a French energy and petroleum company, announced to halt investments in AGEL. In a statement submitted to the exchanges, the company said that the development will not have any material impact on the company’s operations or growth plans.
It said, “We wish to clarify that there is no new financial commitment under discussion with TotalEnergies. Hence, the Press Release will not have any material impact on the Company’s operations or its growth plan. Accordingly, there is no material impact of the Media Report and the Press Release on the Company at this stage.”
TotalEnergies on Monday said in a press release that it will not make any new investments in the Adani group until “the accusations against the Adani group individuals and their consequences have been clarified”.
Rejecting any claims of corruption against AGEL, following the US court indictment of Gautam Adani and his nephew Sagar Adani, it said, “TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as minority (19.75%) shareholder of AGEL and as a joint-venture partner (50%) in project companies with AGEL.”
TotalEnergies holds a 19.75 per cent stake in AGEL and a 50 per cent stake in three joint projects with the Adani group. These investments were valued at $3.2bn, as of September 2024. The company acquired a minority interest in the AGEL in January 2021.
In September, AGEL and TotalEnergies announced a joint venture, equally owned by both entities, for managing a portfolio of solar projects totaling 1,150 MW, located at the renewable energy plant in Khavda, Gujarat. As part of the joint venture, the latter was planning to inject $444mn.
TotalEnergies had paused its investments in the Adani Group earlier as well. In February 2023, it delayed plans to acquire a 25 per cent stake in Adani New Industries (ANIL) following allegations made by US short-seller Hindenburg Research.
AGEL shares dropped nearly 7 per cent to a 52-week low of Rs 902 as of 1pm in Tuesday's trading session on the BSE.