French energy giant TotalEnergies is set to invest $300 million in a joint venture with India's Adani Green Energy to expand renewable energy capacity in India. This partnership marks the first major deal involving the Adani Group since it faced allegations of tax fraud, which led to a significant drop in the value of Adani Group shares, estimated at about $150 billion.
The allegations emerged when U.S. short seller Hindenburg Research accused the Adani Group of engaging in improper dealings and utilizing tax havens. However, the Adani Group vehemently denied these allegations, and their share prices began to recover, particularly after a panel appointed by the Supreme Court of India found no evidence of stock-price manipulation.
One significant development in this ongoing saga was the resignation of Deloitte, the previous auditor of Adani Ports, in August. Deloitte cited concerns related to the Hindenburg allegations, which the company did not wish to investigate independently.
In addition to the Hindenburg allegations, the Organised Crime and Corruption Reporting Project (OCCRP) reported allegations of money laundering, suggesting that millions of dollars were invested in publicly traded stocks through offshore funds to obscure the identity of the buyers.
Despite these controversies, TotalEnergies and Adani Green Energy have announced their joint venture to develop wind and solar farms in India. This partnership allows TotalEnergies to gain direct ownership of assets contributed by Adani Green Energy, aligning with their renewable growth strategy in India. Notably, TotalEnergies already holds a 20% stake in Adani Green Energy.
Adani Green Energy is set to contribute assets to the joint venture, which will aid in its ambitious goal of achieving 45 gigawatts (GW) of renewable energy capacity by 2030. Previously, there were reports of Qatar Investment Authority (QIA) being linked to a deal to acquire $500 million worth of shares in Adani Green Energy through block deals, though other companies have since denied any involvement with the Adani Group.
The joint venture, named Adani Green Energy Twenty Three, is expected to have the capacity to generate 1,050 megawatts of electricity from solar and wind farms, furthering India's efforts to expand its renewable energy sector.
By fLEXI tEAM