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Total Energies SE is in discussions to invest in sustainable energy projects developed by Adani Green Energy Ltd, people familiar with the matter say, could potentially be the first public deal between the French oil giant and Gautam Adani since a short seller leveled fraud allegations against the Indian billionaire’s business empire.
Total wants to buy stakes in some of Adani Green’s projects as part of its push to expand its portfolio of clean energy projects, said the people, who asked not to be identified because the discussions are private. The French group could invest a total of about $700 million in the projects, one of the people said.
Shares of Adani Green rose as much as 2.9% in Mumbai on Friday, hitting their highest level in more than a week.
Deliberations are ongoing and there is no certainty of a transaction, the people said. Representatives for Adani and Total declined to comment.
The deal would expand Total’s presence in the fast-growing Indian energy market, while giving Adani Green more resources to develop new renewable energy projects. It would also mean Total will deepen ties with Adani Green, of which it is already the second-largest shareholder with a 19.75% stake, according to data compiled by Bloomberg.
Close partnership
Total has regularly teamed up with Adani as the French giant looks to increase its clean energy production in a bid to appease shareholders demanding greater efforts to fight climate change. That effort is in line with India’s ambitions to become a carbon-neutral nation by 2070 and curb its dependence on oil and coal.
In 2019, Total spent $600 million to buy a 37.4% stake in Adani Gas Ltd, now called Adani Total Gas. In 2021, it bought a 20% stake in Adani Green and a 50% stake in some of Adani Green’s operating solar farms in a $2.5 billion deal that was one of the largest foreign investments in India.
The bet on Adani Green worked well for Total as its value rose to $10 billion in 2022, when Chief Executive Officer Patrick Pouyanne described the stake as “a source of potential cash.” The duo wanted to collaborate and fund billions of dollars of green hydrogen development in India.
However, when Hindenburg research After accusing the Adani Group of “brazen” market manipulation and accounting fraud earlier this year, Total plotted with Adani Enterprises Ltd. about $5 billion worth of green hydrogen projects to develop, on hold. The Adani Group strongly denied the short seller’s allegations.
Adani’s shares and bonds have recovered some losses since the short-seller report, especially after the group received investment from GQG Partners, and an interim report by a panel appointed by India’s Supreme Court in May said it found no evidence of share price manipulation. Adani Enterprises, which incubates the tycoon’s businesses, reported profit doubling to 7.22 billion rupees ($87 million) in the quarter through March.
Adani Green said in July that it plans to raise 123 billion rupees to expand its bankroll by selling shares to institutional investors.
Total wants to buy stakes in some of Adani Green’s projects as part of its push to expand its portfolio of clean energy projects, said the people, who asked not to be identified because the discussions are private. The French group could invest a total of about $700 million in the projects, one of the people said.
Shares of Adani Green rose as much as 2.9% in Mumbai on Friday, hitting their highest level in more than a week.
Deliberations are ongoing and there is no certainty of a transaction, the people said. Representatives for Adani and Total declined to comment.
The deal would expand Total’s presence in the fast-growing Indian energy market, while giving Adani Green more resources to develop new renewable energy projects. It would also mean Total will deepen ties with Adani Green, of which it is already the second-largest shareholder with a 19.75% stake, according to data compiled by Bloomberg.
Close partnership
Total has regularly teamed up with Adani as the French giant looks to increase its clean energy production in a bid to appease shareholders demanding greater efforts to fight climate change. That effort is in line with India’s ambitions to become a carbon-neutral nation by 2070 and curb its dependence on oil and coal.
In 2019, Total spent $600 million to buy a 37.4% stake in Adani Gas Ltd, now called Adani Total Gas. In 2021, it bought a 20% stake in Adani Green and a 50% stake in some of Adani Green’s operating solar farms in a $2.5 billion deal that was one of the largest foreign investments in India.
The bet on Adani Green worked well for Total as its value rose to $10 billion in 2022, when Chief Executive Officer Patrick Pouyanne described the stake as “a source of potential cash.” The duo wanted to collaborate and fund billions of dollars of green hydrogen development in India.
However, when Hindenburg research After accusing the Adani Group of “brazen” market manipulation and accounting fraud earlier this year, Total plotted with Adani Enterprises Ltd. about $5 billion worth of green hydrogen projects to develop, on hold. The Adani Group strongly denied the short seller’s allegations.
Adani’s shares and bonds have recovered some losses since the short-seller report, especially after the group received investment from GQG Partners, and an interim report by a panel appointed by India’s Supreme Court in May said it found no evidence of share price manipulation. Adani Enterprises, which incubates the tycoon’s businesses, reported profit doubling to 7.22 billion rupees ($87 million) in the quarter through March.
Adani Green said in July that it plans to raise 123 billion rupees to expand its bankroll by selling shares to institutional investors.
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