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Another Equity Firm KKR Invests In Jio For 2.32% stakes

This is the fifth deal Reliance has struck in four weeks for sale of a minority stake in the unit that houses Reliance telecom firm, Jio.

New Delhi: On Friday, Jio Platforms announced the sale of a 2.32% stake in its digital unit to US private equity giant KKR for Rs 11,367 crore, the fifth deal in four weeks that will help oil-to-telecom conglomerate pare debt.

This is KKR’s largest investment in Asia.

“This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement.

KKR was founded in 1976 and has a long history of building leading global enterprises.

KKR has successfully invested in businesses in the technology sector, including ByteDance, BMC Software and GoJek, through its private equity and technology growth funds.

Jio Platforms houses RIL’s telecoms arm Reliance Jio Infocomm.
RIL is on course to become a debt-free company much earlier than its deadline of march as it has raised Rs 78,562 crore in the last four weeks.
RIL’s telecoms arm has raised capital from leading technology investors including Facebook, Silver Lake Partners, Vista Equity Partners and General Atlantic in the last month.

Also Read: Mukesh Ambani Now Asia’s Richest Person, Overtakes Jack Ma

The 5 leading technology investors now own a 17.06% stake in India’s youngest but largest telecom company. All the four businesses are subject to regulative approvals, with the one with Facebook likely to undergo tighter examination given concerns over net neutrality.

As per a Mint report, Reliance Industries is also raising 53,215 crores via a rights issue as part of its plans to be debt-free. The company has appointed nine investment banks for its planned fundraise.

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