'No new financial commitments under discussion with TotalEnergies': Adani

French energy conglomerate TotalEnergies would pause further investments in Adani Group companies due to corruption allegations made by the US SEC

Adani Green Energy Limited (AGEL) on Tuesday dismissed claims that French energy major TotalEnergies had halted new financial commitments to the company following allegations made by the US Securities and Exchange Commission (SEC). In a statement to the exchanges, the company said media reports and related announcements would not affect its operations or growth plans.

 

“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,” AGEL stated.  Here's all you need to know about Adani's US SEC bribery indictment 

 

TotalEnergies pauses investments in Adani

A day earlier, French energy conglomerate TotalEnergies announced it would pause further investments in Adani Group companies due to corruption allegations made by the US SEC. These allegations, filed in a New York court, accuse Adani Group founder Gautam Adani and seven others of bribery in connection with AGEL projects.

 

TotalEnergies stated it became aware of the allegations through public announcements made by the US court last week, as earlier reported by Business Standard.

 

“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,” the company said. 

 

TotalEnergies holds a 19.75 per cent stake in AGEL and a 50 per cent stake in three joint projects with the group. As of September 2024, these commitments were valued at $3.2 billion. The company also indicated it would take measures to protect its interests in AGEL.

 

This is not the first time TotalEnergies has paused its investments in the Adani Group. In February 2023, the French company delayed plans to acquire a 25 per cent stake in Adani New Industries Limited (ANIL) pending the outcome of investigations into allegations made by US short-seller Hindenburg Research.

 

Adani Green share drop

The announcement from TotalEnergies, issued during late trading hours in Indian equity markets, triggered a sharp sell-off in select Adani Group stocks. AGEL’s stock, which had risen 6.4 per cent intraday, closed 8.1 per cent lower. Similarly, shares of Adani Energy Solutions and Adani Total Gas reversed earlier gains.

 

Adani Group’s dollar-denominated bonds also faced pressure, with prices nearing one-year lows as global investors reduced their exposure to the conglomerate amid allegations of fraud and bribery.

 

US SEC allegations won’t impact Adani business: GQG Partners

Despite the controversy, Florida-based investment firm GQG Partners expressed continued confidence in Adani Group, citing the sound fundamentals of its investments.

 

The investment firm noted that the allegations were against employees and not the company itself. It also emphasised that the charges were limited to Adani Green and did not impact other companies within the conglomerate. Therefore, the allegations were unlikely to significantly affect the group’s business operations.