- Mubadala Investment Company, a sovereign investor headquartered in Abu-Dhabi, will invest 9,093.60 crores in Jio networks acquiring 1.85 percent stake
Mubadala Investment Company, a sovereign investor headquartered in Abu-Dhabi, will invest Rs. 9,093.60 crores in Jio networks, valuing Jio Networks at 4.91 lakh crore equity and corporate value of some 5.16 lakh crore, Reliance Industries Limited (RIL) said Friday. Investment by Mubadala would turn into a completely diluted 1.85 percent equity share.
In less than six weeks, Jio Platforms raised a total of approximately 887,655,35 crore from leading global technology and development investors including Twitter, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala.
Reliance, backed by Asia’s richest man Mukesh Ambani, is also in advanced talks with the Abu Dhabi Investment Authority and the Public Investment Fund for Saudi Arabia, Bloomberg News this week has been told by people familiar with the matter.
Mubadala’s investment comes in Jio Platforms at a share value of about 4.91 lakh crore and corporate value of about 5.16 lakh crore. This makes Bharti Airtel, owned by billionaire Sunil Mittal, and many times over Vodafone Idea, owned by another billionaire Kumar Mangalam Birla, worth 1.6 times Jio.
“Mubadala Investment Company (Mubadala) will invest some 9,093,60 crore in Jio Platforms at an equity valuation of some 4,91 lakh crore and corporate value of Rs 5,16 lakh crore. Mubadala ‘s investment will translate into a completely diluted 1,85 percent stake in Jio Platforms,” RIL said in a statement.
“Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala ‘s work on diversifying and connecting the knowledge-based economy of the UAE globally. We look forward to benefiting from Mubadala ‘s experience and insights in fostering growth travel around the world,” said Mukesh Ambani, Chairman and Managing Director of RIL.
Mubadala owns Global Foundries, an electronic chip manufacturing company, and has a stake in several technology firms, such as AMD.
It has a portfolio of investments across multiple fields, including oil, renewable energy, aerospace, satellite communications, agriculture, healthcare, metals, and mining.
“We have seen how Jio has already transformed communications and connectivity in India and as an investor and partner, we are committed to supporting India ‘s digital growth journey. With Jio ‘s network of investors and partners, we believe the platform company will further develop the digital economy,” said Mubadala Investment Company Managing Director and Group CEO Khaldoon Al Mubarak.
With more than 388 million subscribers, the RIL subsidiary Jio Platforms is a next-generation technology platform focused on providing high-quality, affordable digital services across India. The Reliance Jio telecom services arm comes under Jio Platforms.