Adani bribery allegations News
Amid heightened scrutiny over bribery allegations involving Adani Green Energy Ltd (AGEL), two major global investors, GQG Partners and TotalEnergies, have taken starkly different approaches to their association with the Adani Group.
GQG Partners Holds Ground
American investment firm GQG Partners, one of the largest foreign institutional investors in the Adani Group, has decided to retain its $9.7 billion stake in Adani companies. This represents approximately 6.1% of the firm’s total assets, which amount to $158.6 billion.
In an official statement, GQG expressed confidence in the group’s stability, citing its manageable exposure to Adani stocks despite market volatility. “We believe this level of exposure is manageable, even given the volatility in Adani Group stocks,” said the firm.
GQG further highlighted that the allegations of bribery, investigated by the U.S. Securities and Exchange Commission (SEC), are unlikely to materially impact the conglomerate. The firm also noted that Adani Group’s businesses, particularly in infrastructure, operate under stringent regulations set by the Indian government, providing long-term revenue stability.
However, GQG emphasized its commitment to reevaluating its positions if new developments arise. “We will remain diligent in re-underwriting our positions and examining any new facts,” it added.
TotalEnergies Pauses Investments
In contrast, French energy giant TotalEnergies has taken a more cautious approach. The company announced that it would halt all new financial contributions to the Adani Group until the bribery allegations are resolved.
TotalEnergies, which owns a 20% stake in AGEL and a 50% share in joint ventures with Adani, clarified that it was unaware of the U.S. investigation before public announcements by the authorities.
“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a statement.
TotalEnergies affirmed its zero-tolerance policy towards corruption, stating, “This indictment does not target AGEL itself, nor any AGEL-related companies. However, TotalEnergies rejects corruption in any form and will take all relevant actions to protect its interests as a minority shareholder.”
Market Reaction and Background
The developments follow allegations of corruption linked to executives within the Adani Group, which operates across energy, infrastructure, and logistics. These allegations surfaced after a prior controversy involving Hindenburg Research, a U.S.-based short seller, which accused the conglomerate of financial mismanagement.
Despite these challenges, Adani Enterprises, the flagship company of the group, saw its shares rise 1.26% to close at ₹2,257.65 on Monday, November 25.
As the controversy unfolds, investors and regulators continue to monitor the situation, which could have far-reaching implications for one of India’s largest conglomerates.
Summary of the Adani Bribery Case News
American investment firm GQG Partners has decided to retain its $9.7 billion stake in Adani Group companies despite bribery allegations being investigated by the U.S. Securities and Exchange Commission (SEC). The firm believes its 6.1% exposure to Adani stocks is manageable and does not expect the allegations to materially impact the group’s business. GQG emphasized that Adani’s critical infrastructure operations, regulated by the Indian government, ensure long-term stability.
Meanwhile, French energy company TotalEnergies has paused new investments in Adani Group until the accusations are resolved. Although the allegations target specific individuals and not Adani Green Energy Ltd (AGEL) directly, TotalEnergies, which holds a 20% stake in AGEL, reiterated its zero-tolerance policy for corruption and stated it would protect its interests as a minority shareholder.
Despite the controversy, Adani Enterprises’ stock price saw a slight increase, reflecting continued investor confidence. Both companies have committed to monitoring developments closely.
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