In a bid to extend its long term partnership to renewables portfolio, Adani Group on Thursday entered into binding agreement to sell its half of the stake in solar energy assets for about USD 510 million to Total Gas & Power Business Services SAS (Total).
As per the deal, Total will acquire 50 percent stake and other instruments in a Joint Venture Company (JVCo) having more than 2 GW (2,148 MWac) of operating solar projects owned by Adani Green Energy Ltd (AGEL).
Moreover, the remaining 50 percent stake in the JVCo will be held by AGEL. This solar portfolio is spread across eleven states on pan India.
Speaking on the deal, Gautam Adani, Chairman of Adani Group, expressed happiness and said “we are delighted to extend our long term partnership with Total to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani group commitment towards sustainable development. This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030.”
However, the transaction is subject to customary approvals and definitive agreements.
The company said in a statement that the transaction underlines the two organisation’s commitment towards addressing India’s growing demand for power in a sustainable manner and help meet the country’s climate change goals.
“Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy. This interest in over 2 GW of solar projects represents a real change of scale of our presence in India’s renewable energy sector, which has very significant growth potential in the coming years. It will contribute to our ambition to deploy 25 GW of renewable energy by 2025. We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market,” said Patrick Pouyanné, Chairman and Chief Executive Officer of Total.
Adani Group arm AGEL is one of the largest renewable energy companies in India, with a current project portfolio of 6 GW including under construction capacity.
Meanwhile, shares of the company were trading at Rs 202.20 apiece, up 4.98 percent, from previous close on BSE at 3:25 p.m.