Total pauses fresh investments in Adani group till air cleared

NEW DELHI: French energy major Total Energies, which has made strategic investments of $3.8 billion in the Adani group entities, has pressed the pause button on fresh investments in the ahmedabad-based ports-to-power conglomerate until the bribery allegations — denied by the group — levelled in a US court against top functionaries are cleared.
“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, Total Energies will not make any new financial contribution as part of its investments in the Adani group of companies,” the French major said in a statement on Monday.
According to the statement, Total was not made “aware of the existence of an investigation into the alleged corruption scheme” by the Adani group. It rejected any suggestion of corruption in its dealings with the Adani group and were transparent.
Total had put on hold all new investments in Adani group following US short-seller Hindenburg’s allegations in January last year. After nearly a year’s gap, Total invested $300 million to complete a 1,050 MW equal joint venture with Adani Green Energy in December. In September this year, Adani Green Energy announced another equal joint venture of 1,150 MW of solar with $444 million investment from Total.
“Total Energies emphasises that its investments in Adani entities were made in full compliance with applicable laws, following its internal governance processes, due diligence, and representations made by the sellers,”
“Total Energies, which is not targeted nor involved in the actions described in the US indictment, will take all relevant actions to protect its interests as a minority (19.75 percent) shareholder in Adani Green Energy and as a 50 percent joint venture partner in projects with Adani Green Energy.”
The Adani group has denied any wrongdoing after the US justice department and market watchdog Securities and Exchange Commission charged chairman Gautam Adani, Adani Green Energy executive director Sagar Adani, and the company’s managing director Vneet Jaain with allegedly paying bribes to state government officials in India for favourable solar power supply agreements.
The charges include withholding information on the investigation by US federal prosecutors from American investors when raising two bonds and two syndicated loans.
Total holds 50% stake in three joint ventures with Adani Green Energy Ltd and 37.4% in Adani Total Gas Ltd.