Adani Green on Wednesday said that its Board of Directors has approved the execution of a binding term sheet with TotalEnergies SE, pursuant to which Total will invest $300 million to form a new 50:50 Joint Venture Company. “We hereby inform that the Board of Directors of Company has in its meeting held on September 20, 2023 approved the execution of a binding termsheet to be entered into between the Company, Adani Green Energy Twenty Three Limited (AGE23L) and TotalEnergies SE (Total) pursuant to which, inter alia, Total will make further investment (either directly or through its affiliates) of USD 300 Mn to form a new 50:50 Joint Venture Company with the Company and modify certain terms of its investment in AGE23L,” the company said in a regulatory filing.
The company said that the new joint venture will house a 1050 MWac portfolio which will comprise a mix of already operational (300 MWac), under construction (500 MWac) and under development assets (250 MWac) with a blend of both, solar and wind power.
The purpose of the binding term sheet, the company said, is to provide for further investment by Total (either directly or through its affiliates) of $300 million to form a new 50:50 Joint Venture Company and modify certain terms of its investment in AGE23L. “Both, the Company and Total will hold 50:50 per cent of the paid-up equity share capital of the new Joint Venture Company. The Company and Total each hold 50:50 per cent of the paid-up equity share capital of AGE23L. Total, through its affiliate entities, holds ~19.75 per cent shareholding in the Company,” Adani Green Energy said.
The transaction details, Adani Green said, are “under discussion”, and both the companies will discuss and agree to these in the definitive agreements, and the transaction will be “undertaken at an arms’ length price”.
The announcement comes just a week after a Bloomberg report suggested that the French group could invest about $700 million into the Adani Green projects.