By FnF Correspondent | PUBLISHED: 21, Jan 2021, 10:58 am IST | UPDATED: 21, Jan 2021, 11:49 am IST
Delhi: French energy giant 'Total' has agreed to buy a 20% stake in Adani Green Energy Limited (AGEL), touted to become the world's largest renewable firm by 2025 for $2.5 billion or Rs 18,327 crore, at a significant discount to its market price of $4.09 billion or Rs 30,000 crore.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, said Adani Group in a statement.
TOTAL has agreed to buy 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 $2.5 Billion.
The transaction marks the deepening partnership between the Adani Group – India's leading infrastructure player and TOTAL – a global energy major in India's transition and green energy fields.
In 2018, Total and Adani embarked on the energy partnership with Total in Adani Gas Limited, city gas distribution business, and associated LNG terminal business and gas marketing business.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."
Along with this 20% minority interest in AGEL, Total will have a seat on the company's board of directors.AGEL started in 2015 with the world's largest single-location solar power project located in Kamuthi, Tamil Nadu (648 MW), has become the leading solar power generation asset. 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.
The partnership with AGEL in India's renewables space will be crucial to Total's objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterward.AEGL shares on BSE closed up 0.6% at Rs953.45 in a weak Mumbai market on Monday, valuing the company over Rs 1,49,121 crore.