Paris (France), February 4 (ANI): Investments by TotalEnergies in Adani Group entities were undertaken in full compliance with applicable Indian laws and with its own internal governance processes, the multinational energy major said on Friday amid allegations against Adani Group published by the Hindenburg Research.
It also listed data about its current stakes in ventures with Adani. Following is a table detailing the stake:The exposure resulting from these above-shown stakes, TotalEnergies said in the release, is 'limited', as it represents 2.4 per cent ($3.1 billion at December 31, 2022) of the company's capital employed and only $180 million of net operating income in 2022.
"These investments being accounted for under the equity method, TotalEnergies has not performed any re-evaluation in its accounts of its stakes in the listed entities ATGL and AGEL in relation to the increase in their stock values," it said.
"The due diligence, which were carried out to TotalEnergies' satisfaction, were consistent with best practices, and all relevant material in the public domain was reviewed, including the detailed disclosures to regulators required under applicable laws," the energy firm said in a release.
The day-to-day operations of the entities listed in India -- Adani Total Gas and Adani Green Energyare, it said, are managed by independent teams of professional managers, and their boards are composed of at least 50 per cent independent and non-executive directors.
This statement by TotalEnergies comes a week after a report by a US-based Hindenburg Research, which surfaced on January 24, claimed the Adani Group of having weak business fundamentals, allegations of stock manipulation and accounting fraud, among others.
The report raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. Following the report, the shares of all Adani Group companies have been consistently declining, though with varying degrees.
In a long response, Adani Group on Sunday said the report by Hindenburg Research was not an attack on any specific company but a 'calculated attack' on India, its growth story, and ambitions. It added the report was 'nothing but a lie'. (ANI)