TotalEnergies has been caught up in the Adani scandal in India

“The Biggest Fraud in History”, which Indian giant Adan has been accused of in a detailed report by American hedge fund Hindenburg Research, has TotalEnergies breaking out in a cold sweat. The text, published on January 24, accuses the Indian conglomerate of accounting fraud and manipulation that artificially inflated its valuation. The allegations were denied by Adani’s group, which condemned the attack “unjustified” and “Evil ». Within a month, its market capitalization decreased by 60%, or the equivalent of 145. billion dollars (134 billion euros). In early March, India’s Supreme Court set up an expert committee to investigate possible irregularities.

This time Hindenburg Research, which specializes in underperforming companies, points to a role. by TotalEnergies in this “fraud”. The hedge fund takes its name from the Hindenburg Zeppelin disaster, a giant airship that was destroyed by fire on landing in the United States in 1937. “An entirely man-made and entirely avoidable disaster”“, it is stated on the website of the foundation.

Hindenburg Research founding boss Nathan Anderson details the world Numerous complaints against the French major, while claiming that he did not bet on him, while he speculated against the Adani group. Mr Anderson blames TotalEnergies “At best, turn a blind eye and at worst, be an accomplice” of Georgia “ problems In connection with the manipulation of the stock prices of the Adan Group, its two subsidiaries, Adan Green Energy and Adan Total Gas, of which the Frenchman is a co-shareholder. Allegations to which the tricolor group refused to respond directly.

with a fine comb

After eighteen months of scrutiny, the balance sheet of Indian giant Hindenburg Research said it was questioning the French oil company. In this case, in 2020, it will be acquired by 37.4% of the subsidiary company Adan Gas, which has many gas distribution licenses in the country.

Indian law requires any buyer of a stake in a listed company to first submit a takeover offer (OPA) before acquiring the shares of the major shareholders, in this case the Adani family. This was done in October 2019. TotalEnergies is offering to buy back more than 277 million shares with a total value of $584 million. But the takeover ended in a fiasco, which was surprising: only 595 titles, out of the expected 277 million, were sold to him for a paltry $1,254.