French oil and energy group “Total” on Monday announced that they has agreed to buy a 20% minority stake in India’s Adani Green Energy Limited (AGEL) from Adani Group.
The company will buy a 20% stake in Adani Green from the promoter group, and half the ownership in operative solar assets for $2.5 billion.
This comes at a time India aims to increase its existing renewable energy capacity to 220 gigawatts by 2022.
About Company
Adani Green Energy has more than 14.6 gigawatts of contracted renewable capacity, with an operating capacity of 3 GW, another 3 GW under construction and 8.6 GW under development.
Regulatory filling
“The investment in AGEL is another step in the strategic alliance between Adani Group and TOTAL, across various businesses and companies of the Adani Group, covering investments in LNG terminals, gas utility business, and renewable assets across India,” The statement said.
Comment from Total
“Given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars—renewables and natural gas.”
Comment from Adani Group
Gautam Adani, Chairman, “We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited.
We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India.
We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”
Impact on Stock Market
Shares of Adani Green Energy fell as much as 3% but recovered from the day’s low after the announcement.
The stock is currently trading 1.6% lower at Rs 932.1 apiece.
Similar event in past
In 2018, Total had acquired a 37.4 percent stake in Adani Gas Limited and 50 percent stake in its subsidiary Dhamra LNG project.
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