French power big TotalEnergies SE on Monday stated it would make no new monetary contribution as a part of its investments in Adani group firms until the Indian agency’s founder is cleared of bribery costs.
Gautam Adani, chairman of Adani Group (left) with Patrick Pouyanné, chairman and CEO of TotalEnergies. (File Picture)
The power big stated it was not conscious of the investigation into the alleged corruption.
TotalEnergies is among the largest international traders in billionaire Gautam Adani’s enterprise empire and had beforehand taken stakes within the group’s renewable power enterprise Adani Inexperienced Power Ltd (AEGL) and metropolis fuel unit Adani Whole Gasoline Ltd (ATGL).
In a press release, the French agency stated it learnt of US authorities indicting Gautam Adani and two different executives for allegedly paying USD 265 million bribes to Indian officers to safe solar energy provide contracts for AEGL.
“This indictment does not target AGEL itself, nor any AGEL-related companies,” TotalEnergies stated. “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies.”
Adani group has dismissed the allegations introduced within the US courtroom as baseless and has stated it might search all doable authorized recourse.
TotalEnergies holds a 19.75 per cent stake in Adani Inexperienced Power Ltd – the renewable power arm of the Indian group helmed by Gautam Adani. It additionally has a 50 per cent stake in three three way partnership firms that produce electrical energy from daylight and wind with AEGL.
The French agency additionally holds a 37.4 per cent stake in Adani Whole Gasoline Ltd, which retails CNG to cars and pipes pure fuel to households for cooking.
“In accordance with its code of conduct, TotalEnergies rejects corruption in any form,” the French big stated within the assertion. “TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority (19.75 per cent) shareholder of AGEL and as a joint-venture partner (50 per cent) in project companies with AGEL.”
The corporate stated it made the investments in Adani’s entities “in full compliance with applicable laws”.
This was additionally consistent with its personal inside governance processes pursuant to due diligence and representations made by the sellers.
“In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme,” the assertion added.
In January 2021, TotalEnergies acquired a minority curiosity within the listed firm Adani Inexperienced Power Restricted (AEGL) of which it now owns 19.75 per cent. As a part of its technique to reinforce its growth in renewables in India by direct entry to a portfolio of belongings, it has additionally acquired a 50 per cent stake in three joint ventures working renewable belongings (AGEL23 in 2020, AREL9 in 2023, and AREL64 in 2024).
The French power big had in February final 12 months placed on maintain a deliberate funding in Adani Group’s USD 50 billion hydrogen undertaking pending outcomes of an audit launched following allegations by a US short-seller.
Whereas the partnership, the place the French oil big was to take a 25 per cent stake within the hydrogen enterprise of the Adani group, was introduced in June 2022, TotalEnergies had not but signed a contract.
As per the June 2022 announcement, TotalEnergies was to take 25 per cent fairness in Adani New Industries Ltd (ANIL) – the Adani Group agency that’s investing USD 50 billion over 10 years in a inexperienced hydrogen ecosystem, together with an preliminary manufacturing capability of 1 million tonnes earlier than 2030.
The announcement by Whole provides to the woes of Adani. The disaster across the group, which started when Hindenburg launched a damning report in January 2023, has additionally been utilized by the opposition events to assault the federal government, alleging that the tycoon’s rise was primarily due to his affiliation with Prime Minister Narendra Modi. The federal government has rejected the allegation.
Hindenburg’s allegations of accounting and monetary fraud unleashed an over USD 150 billion rout in market worth throughout Adani’s firms. Adani group has vehemently denied the allegations, calling them malicious and an “attack on India”.
The group shares had recovered many of the losses earlier than final week’s indictment in a New York Court docket.
TotalEnergies, France’s largest oil and fuel firm, first joined palms with Adani in 2018 for a liquefied pure fuel (LNG) enterprise earlier than shopping for a 19.75 per cent stake in AGEL and a stake in photo voltaic belongings for USD 2.5 billion in 2020-21. It additionally took a 37.4 per cent stake in ATGL.