TotalEnergies is preparing to sell up to 6% stake in Adani Green Energy Limited (NSEI:ADANIGREEN), according to people familiar with the development. The French energy major currently holds almost 19% in Adani Group's renewable energy arm through two subsidiaries - 15.58% via TotalEnergies Renewables Indian Ocean Ltd. and 3.41% through TotalEnergies Solar Wind Indian Ocean Ltd. "TotalEnergies had bought its stake in AGEL in 2021 for around $2.5 billion, and it is now valued at nearly $8 billion. They now intend to take some profit off the table," said an industry executive aware of developments.
The person added that the stake may be offered to Adani Green Energy, which may evaluate the proposal. Emails sent to Adani Green and Total did not get a response. At Adani Green's current market capitalisation of INR 169,000 million, Total's 6% stake sale could fetch the company around INR 102,000 million (about $1.14 billion).
This September, TotalEnergies chief executive Patrick Pouyanné had told investors that while AGEL remained a strong and growing company, the group would not expand its green energy partnership with Adani. "I would be very happy to sell my stake in Adani Green," he had said. Total acquired a 20% minority stake in AGEL and 50% ownership in its operating solar portfolio (over 2 GW) in January 2021 for $2.5 billion, aligning with the French major's renewable energy ambitions.
The investment also gave Total a seat on AGEL's board. TotalEnergies is said to be exploring the sale of several renewable energy assets in Asia as part of efforts to reduce its debt burden.
