Investments in Adani entities done in full compliance with applicable laws: TotalEnergies

TotalEnergies is one of the largest foreign investors in four of Gautam Adani’s energy companies – Adani Total (50%),

(37.4%), Adani Green Energy (19.75%) and AGEL23 (50%).

“TotalEnergies’ investments in Adani’s entities were undertaken in full compliance with applicable – namely Indian – laws, and with TotalEnergies’ own internal governance processes,” the company said in a press statement, adding that the due diligence, which were carried out to TotalEnergies’ satisfaction, were consistent with best practices, and all relevant material in the public domain was reviewed, including the disclosures to regulators required under applicable laws.

The company also said it welcomes the announcement by Adani to mandate one of the “big four” accounting firms to carry out a general audit.

The statement comes after US short seller Hindenburg’s report caused a $100 billion rout across Adani’s companies. Adani Group has denied the allegations terming them malicious. Total said its Adani-linked business only accounted for $180 million in net operating income for 2022 of its net operating income of $30.2 billion in the first nine months of last year.

“TotalEnergies’ exposure resulting from these stakes is limited, as it represents 2.4% ($3.1 billion at December 31, 2022) of the company’s capital employed and only $180 million of net operating income in 2022.

“The day-to-day operations of the entities listed in India, Adani Total Gas (ATGL) and (AGEL), are anaged by independent teams of professional managers, and their boards are composed of at least 50% independent and non-executive directors, a member company of the international financial audit firm EY is AGEL’s statutory auditor.”In 2018, TotalEnergies and Adani Group partnered for development of a joint LNG business, Adani Total (ATPL). ATPL aims to develop the Dhamra LNG regasification terminal – which is expected to start operations in Q2 2023 – and to market LNG.