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TotalEnergies may cut stake in Adani Green to take advantage of valuation jump

TotalEnergies SE said it may sell a small part of its 20% stake in Adani Green Energy Ltd. to cash in on the jump in the valuation of the Indian renewable energy producer.

The French energy giant bought 20% of Adani Green in 2021 for $2 billion, building on a series of earlier deals with Indian billionaire Gautam Adani. That stake was worth about $10 billion at the end of August, according to TotalEnergies.

Patrick Pouyanne, chief executive of TotalEnergies, said in response to a question during an investor presentation on Wednesday that appreciation in value is “a source of potential cash.” In an interview in New York, Pouyanne said his company has no plans at this time to reduce his stake, and if he did, any reduction would be small and only to recoup some of his initial investment.

“We are committed to Adani Green,” he said in the interview.

Shares of Adani Green have risen 54% this year, compared with a 1.8% drop in the benchmark S&P BSE Sensex index in India. Still, Adani Green is down 15% so far this month amid concerns she is taking on too much debt as she expands. The company’s balance sheet is “safe,” Pouyanne said.

Gautam Adani, Asia’s richest man, has pledged to invest around $70 billion across the green energy supply chain by 2030. His conglomerate aims to become the world’s largest producer of renewable energy by the end of this decade. .

In June, TotalEnergies agreed to buy a 25% stake in Adani New Industries Ltd. for an undisclosed sum, part of a plan to invest billions of dollars in green hydrogen development in India. Adani New Industries is owned by Adani Enterprises, the flagship company of the coal-to-ports conglomerate controlled by the Indian tycoon.

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