TOTAL to Acquire 20% Stake in Adani Green Energy Limited
Ahmedabad, January 18, 2020: Adani Promoter Group, India and TOTAL, France announce the acquisition of a 20% minority interest by TOTAL in AGEL via the acquisition of shares held by the Adani Promoter Group in Adani Green Energy Limited.
The transaction marks the deepening partnership between the Adani Group – India’s leading infrastructure platform and TOTAL – a global energy major in the transition and green energy fields in India. 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. This is in-line with the commitment of both Adani & TOTAL to be leading participants in the sustainable economy of the future and help India in its quest for the development of renewable energy.
In 2018, TOTAL and Adani embarked on the energy partnership with investment by TOTAL in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business. TOTAL acquired a 37.4% stake in Adani Gas Limited and a 50% stake in the Dhamra LNG project. During the development of this partnership, it was further agreed that TOTAL and Adani shall continue this alliance into the wider sustainable energy space. TOTAL and Adani agreed on the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of USD 2.5 Billion.
India has set a policy target of setting up 450 GW of renewable power capacity by 2030, driven by the vision, spirit, and leadership of Honorable Prime Minister Narendra Modi. Starting with Prime Minister Modi’s commitment in the Paris Agreement in 2015 and further reinforcement in the 2019 United Nations Climate Action Summit, India has been in the forefront of the global agenda of the fight against climate change. In this context, Adani Group and TOTAL have joined hands to develop green power sources at affordable prices and to deliver this transformational energy solution.
AGEL, started in 2015 with the world’s largest single location solar power project located in Kamuthi, Tamil Nadu (648 MW) has come a long way to be ranked as the #1 global solar power generation asset developer by Mercom Capital. As on date, AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025 and is committed to contribute meaningfully to India’s COP21 goals and to the wider UNFCC goals of sustainability.
Speaking on the occasion, Adani Group Chairman, Mr. Gautam Adani, said, “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.”
Speaking on the occasion, TOTAL SE CEO, Mr. Patrick Pouyanné, said, “This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India. Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties, which began with our first joint venture 2.3GW of renewable capacity. 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.”
The Adani Promoter Group was represented by Clifford Chance and Cyril Amarchand Mangaldas. TOTAL was represented by Latham & Watkins and AZB Partners.
About Adani Group
Adani Group is a diversified organization in India with a combined market cap of over USD 55 billion, comprising 6 publicly traded companies. It has created world class transport and utility infrastructure portfolios across India. Adani Group is headquartered in Ahmedabad, in the state of Gujarat, India. Over the years, Adani Group has positioned itself to be the market leader in its transport logistics and energy utility portfolio businesses focusing on large scale infrastructure development in India with O&M practices benchmarked to global standards. With four IG rated businesses it is the only Infrastructure Investment Grade issuer in India.
Adani owes its success and leadership position to its core philosophy of ‘Nation Building’ driven by ‘Growth with Goodness’ – a guiding principle for sustainable growth. Adani is committed to increase its ESG footprint by realigning its businesses with emphasis on climate protection and increasing community outreach through its CSR program based on the principles of sustainability, diversity and shared values.
About Adani Green Energy Limited
Adani Green Energy Limited (AGEL), a part of the Adani Group, has 14.6 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties. AGEL has been ranked as the #1 global solar power generation asset owner by Mercom Capital. The company aims to achieve 25 GW of renewable power by 2025 and is committed to contribute to India’s COP21 goals.
About TOTAL
Total is a broad energy company that produces and markets fuels, natural gas and electricity. Total’s 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, Total’s ambition is to become the responsible energy major.
(Sanket)