- On Friday, Reliance Industries declared Silver Lake in Jio Platforms an additional investment of 4,546.8 crores for an additional 0.93 percent stake in the digital unit of RIL.
On Friday, Reliance Industries declared Silver Lake in Jio Platforms an additional investment of 4,546.8 crores for an additional 0.93 percent stake in the digital unit of RIL.
This is in addition to the investment crore of around 5,655.75 already made on May 4, 2020, by the private equity company.
This takes Silver Lake and its co-investors in Jio Platforms’ aggregate investment to around 10,202.55 crores. On Friday, the announcement closes on the heels of RIL announcing the selling of 1.85 percent stake in Jio Platforms to sovereign investor Mubadala based in Abu Dhabi for some 9,093.60 crores.
The investment value of Silver Lake Jio Platforms at an equity value of approximately 4.91 lakh crore and an enterprise value of approximately 5.16 lakh crore, and translates into a fully diluted 2.08 percent equity stake in Jio Platforms. With this investment, in less than six weeks, Jio Platforms raised some 92,202.15 crores from leading technology investors.
Commenting on the aggregate investment brought by Silver Lake, Reliance Industries Ltd. chairman and managing director Mukesh Ambani said, “Silver Lake and its co-investors are valued partners as we continue to expand and develop the digital Indian economy for the good of all Indians. We are pleased to have their trust and support, as we drive the transformation of the Indian Digital Society, as well as the benefit of their leadership in global technology investment and their valued network of relations.
I would like to stress that Silver Lake’s additional investment in Jio Platforms, over five weeks during the COVID-19 pandemic, is a strong endorsement of the Indian economy’s intrinsic resilience, which will surely grow larger with comprehensive digital enabling.
Egon Durban, Co-CEO of Silver Lake and Managing Partner, said, “We are excited to increase our visibility and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality, affordable digital services to a mass customer and small business population. Jio ‘s investment momentum validates a compelling business model and underlines our admiration for Mukesh Ambani, his team, and their courageous vision in creating and building one of the most outstanding technology companies in the world.
The transaction is subject to customary regulatory and other approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and as legal counsel to AZB & Partners and Davis Polk & Wardwell. Silver Lake was advised by Latham & Watkins LLP, Shardul Amarchand Mangaldas & Co, and Simpson Thacher & Bartlett LLP.
Reliance Industries shares, which gained more than 2 percent in early trading on Friday, later ended the day on a flat note due to profit-booking.
Reliance Industries shares hit a one-year high in early trade after the company announced a Mubadala deal.
This is a second such deal in the space of 24 hours by Jio. The aggressive urge of investment certainly shows the intent of RIL towards Jio Platforms and the interest of investors are huge in this project as it can bring the next digital revolution. It will be interesting to see how this episode shapes up again and which global investors, Jio will attract now.