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Energy giant is one of Adani’s biggest foreign investors; GQG Partners backs group, says indictment against individuals
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Gautam Adani
#New Delhi
French energy giant TotalEnergies SE on Monday said it was not aware of the corruption investigation its partner Adani group’s founder chairman was facing in the US and that it is pausing fresh investments in the conglomerate pending the outcome of the charges.
Separately, GQG Partners, which made huge bets on Adani group post hammering it saw in the aftermath of the Hindenburg Report last year, said the indictment is against individuals only and the bet it made on the group holds good.
TotalEnergies is one of the biggest foreign investors in billionaire Gautam Adani’s business empire and had previously taken stakes in the group’s renewable energy venture Adani Green Energy Ltd (AEGL) and city gas unit Adani Total Gas Ltd (ATGL).
In a statement, the French firm said it learnt of US authorities indicting Gautam Adani and two other executives for allegedly paying USD 265 million bribes to Indian officials to secure solar power supply contracts for AEGL.
“This indictment does not target AGEL itself, nor any AGEL-related companies,” TotalEnergies said. “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies.” Adani group has dismissed the allegations brought in the US court as baseless and has said it would seek all possible legal recourse.
“In accordance with its code of conduct, TotalEnergies rejects corruption in any form,” the French giant said in the statement.
GQG’s faith in group
GQG, whose exposure to Adani group companies stands at USD 8.1 billion, said, “On a fundamental business case, we continue to believe each individual company is well-positioned for the future”. “Our investments in Adani as of November 21 have had positive returns in aggregate for our portfolios,” GQG said in a note. The bribery allegations, it said, relate to AGEL, not other Adani companies.
Meanwhile, the conglomerate on Monday showcased its cash reserves and profits that are enough to service debt obligations as well as meet growth plans as it reassured investors about business as usual despite a US bribery indictment against the founder.
This post was originally published on here
