Reliance Industries Limited (RIL) said on Friday US equity firm KKR will invest Rs 11,367 crore for a 2.32% stake in its digital arm, Jio Platforms, in the fifth major investment announced in Mukesh Ambani’s oil-retail-to-telecom conglomerate in four weeks.
In KKR’s largest investment in Asia, the transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
Jio Platforms had raised Rs 67,194.75 crore from leading technology investors including Facebook, Silver Lake Partners, Vista Equity Partners and General Atlantic as part of the plan to make RIL net debt-free before March 31, 2021.
Here is what you need to know:
What Mukesh Ambani, chairperson and managing director of Reliance Industries, said.
“I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians,” Mukesh Ambani said.
“KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio,” he added.
What Henry Kravis, co-founder and co-CEO of KKR, said.
“Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution,” Henry Kravis said.
“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” he added.
Facebook said on April 22 it would invest $5.7 billion for a 9.99% stake.
US private equity firm Silver Lake said on May 4 it will invest Rs 5,655.75 crore in Jio Platforms for a 1.15% stake.
Vista Equity Partners said on May 8 it will be picking up a 2.32% stake for Rs 11,367 crore.
General Atlantic had said on May 18 it will buy 1.34% stake in Jio Platforms for Rs 6,598.38 crore.