TotalEnergies is in talks to invest in Adani Green Energy’s renewable energy projects, in what could be the first deal between the companies since a short-seller’s allegations damaged the Indian group’s shares in January, Bloomberg News reported.
The French oil company could invest about $700 million in the projects in a drive to expand its clean energy portfolio, the report said on Friday, citing one source.
TotalEnergies and Adani did not immediately reply to Reuters’ requests for comment.
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Hindenburg Research had in January alleged improper dealings and use of tax havens by Adani Group, resulting in shares of its companies losing about $150 billion in value.
The group’s shares have since recovered some of their losses, after a Supreme Court-appointed panel found “no regulatory failure” on price manipulation in Adani Group stocks.
Adani Green shares were up 2.4% on Friday.
As of June 30, TotalEnergies owned nearly 20% of Adani Green and 37.4% of Adani Gas, according to stock exchange data. The investment is worth around $3.7 billion as of Thursday’s close.
TotalEnergies CEO Pouyanne said last year that the stake in Adani Green was bought for $2 billion, a value he estimated to have risen to $10 billion in late 2022.
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In February, TotalEnergies said it had not yet signed a contract announced last year to extend its partnership with Adani to produce green hydrogen.
Adani Green had in July said it approved raising 123 billion rupees ($1.48 billion) through a qualified institutional placement.
Last month, the Organised Crime and Corruption Reporting Project reported that millions of dollars were invested in publicly traded Adani Group stocks through funds in Mauritius, saying this “obscured” the involvement of alleged business partners of India’s Adani family.