Total's Potential $300 Million Investment in New JV with Adani Green Energy Makes Headlines

20 Sep, 2023

Total's Potential $300 Million Investment in New JV with Adani Green Energy Makes Headlines

Adani Green Energy stocks will be in the spotlight on Wednesday following reports citing inside sources that suggest France's TotalEnergies is considering a substantial investment of approximately $300 million in a new joint venture alongside the Adani Group's subsidiary. This joint venture is expected to host approximately 1 GW of renewable energy projects. In a previous report last week by Bloomberg, it was hinted that TotalEnergies might acquire stakes in several projects within Adani Green Energy's portfolio as part of its efforts to expand its clean energy holdings.

According to the latest report from the Economic Times, the joint venture will be equally owned by both companies and will encompass a combination of solar and wind power assets. These assets are projected to include 250 MW of operational capacity, 250 MW of planned projects, and 500 MW of facilities under construction.

The Economic Times report suggests that TotalEnergies will provide the equity investment, while Adani Green Energy, under the leadership of Gautam Adani, will contribute to the renewable energy assets.

If this materializes, it could potentially mark the first public collaboration between the French oil giant and the Adani Group since Hindenburg Research, a US-based short-seller, raised allegations of fraud against the Adani Group, accusing them of engaging in stock manipulation and accounting fraud schemes over several decades. It's worth noting that the Adani Group has vehemently denied any wrongdoing.

Over the past six months, Adani Green Energy shares have seen an 18.36% increase in value. However, they remain down by 46.82% for the year 2023 as of now.

Last week's Bloomberg report suggested that TotalEnergies might invest approximately $700 million in Adani Green Energy projects. It's important to note that discussions are ongoing, and there is no certainty regarding the outcome of a potential transaction, as reported by Bloomberg.