TotalEnergies limits its exposure to the Adani group to less than 3,000 million

MADRID, 3 Feb.

TotalEnergies limits its exposure to the Adani group to less than 3,000 million


The French energy company TotalEnergies estimates that its exposure to the Adani group "is limited", since it represents 2.4% of the capital employed by the company, some 3,100 million dollars (2,826 million euros) as of December 31, 2022 and only $180 million of net operating income in 2022.

The French company has thus come out of the way of the accusations against the Adani Group published by Hindenburg Research on January 24, noting that its investments in entities of the Indian group were carried out "in full compliance with the applicable laws" and with the processes themselves. of internal governance of TotalEnergies.

"The due diligence, which was carried out to the satisfaction of TotalEnergies, was consistent with best practice, and all relevant material in the public domain was reviewed, including detailed disclosures to regulators required by applicable laws," it added.

In this way, it has specified that TotalEnergies and Adani Group embarked on an energy association in 2018 with the development of a joint LNG business, Adani Total Private Limited (ATPL) with the objective of developing the Dhamra LNG regasification terminal, which is expected to to start operating in the second quarter of 2023, as well as commercialize LNG.

In 2019, TotalEnergies announced the acquisition of a 37.4% stake in the listed entity Adani Total Gas Limited (ATGL), an urban gas distribution company that at the end of 2022 operated 33 urban gas licenses and some 380 filling stations. compressed natural gas (CNG).

In 2020, TotalEnergies and Adani Group expanded their relationship with TotalEnergies' acquisition of a 20% minority stake in the listed company Adani Green Energy Limited, and a 50% stake in a 2.35 GWac portfolio of solar assets. owned by AGEL (AGEL23), for a total investment of 2,500 million dollars (2,279 million euros).

Also, TotalEnergies has indicated that it welcomes Adani's announcement to commission one of the "big four" accounting firms to carry out a general audit.

On January 24, the investment firm Hindenburg Research published a dossier that compiled the conclusions of more than two years of investigation into the activities of the Adani Group, accusing the Indian conglomerate of participating in a "blatant stock manipulation and fraud scheme." accounting over decades.

The New York firm reported that, after its investigation, it had taken a short (bearish) position in the Adani Group Companies through US-traded bonds and non-Indian-traded derivatives.

In response to these accusations, Adani Group defends the "malicious" and unsubstantiated nature of the report published by Hindenburg Research, "designed to have a detrimental effect on the share value of Adani Group companies", since Hindenburg Research, has positioned itself to benefit from a drop in the value of Adani's shares.

"We are deeply concerned about this intentional and reckless attempt by a foreign entity to deceive the investment community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders," the multinational said, adding that it is studying the provisions applicable US and Indian laws to take corrective and punitive action against Hindenburg Research.

Since the publication of the Hindenburg Research report, the Adani group has cut its market value by more than 100,000 million dollars (91,165 million euros), causing Gautam Adani, who had come to occupy the second position among the world's largest fortunes of the Bloomberg Billionaires Index, has fallen to 21st place in a few days.