Announcing the sale of 1.85% stake in Jio Platforms to Abu Dhabi-based sovereign investor Mubadala for Rs 9,093.60 crore
NEW DELHI| On Friday Reliance Industries announced an additional investment of Rs 4,546.8 crore by Silver Lake in Jio Platforms for an additional 0.93% stake in RIL’s digital unit.
This is in addition to the Rs 5,655.75 crore of investment already made by the private equity firm on 4 May 2020.
This brings the aggregate investment by Silver Lake and its co-investors in Jio Platforms to Rs 10,202.55 crore. The announcement comes close on the heels of RIL on Friday announcing the sale of 1.85% stake in Jio Platforms to Abu Dhabi-based sovereign investor Mubadala for Rs 9,093.60 crore.
Silver Lake’s investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, and will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 92,202.15 crore from leading technology investors in less than six weeks.
Commenting on the aggregate investment brought by Silver Lake, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “Silver Lake and its co-investors are valued partners as we continue to grow and transform the Indian digital ecosystem for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships, as we drive the Indian Digital Society’s transformation. I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement.”
Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world’s most remarkable technology companies.” The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partner and Davis Polk and Wardwell acted as legal counsels. Latham & Watkins LLP, Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett LLP acted as legal counsels to Silver Lake.
Shares of Reliance Industries, which gained over 2% in early trade on Friday, later closed the day on a flat note due to profit-booking.
In early trade, shares of Reliance Industries hit one-year high after the company announced Mubadala deal.
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