New Delhi: Reliance Industries announced Friday the sale of a 2.32 per cent stake in its digital unit to US private equity giant KKR for Rs 11,367 crore. This is the fifth deal in four weeks for Reliance Industries. It will inject a combined Rs 78,562 crore in the oil-to-telecom conglomerate to help it pare debt. This is KKR’s largest investment in Asia.
Largest investment
“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. It will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis,” KKR said in a statement.
Other Reliance deals in the recent past
The deal follows Facebook picking up a 9.99 per cent stake in the firm, April 22 for Rs 43,574 crore. Within days of that deal, Silver Lake bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore. Then May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms. The deak was finalized at Rs 11,367 crore. General Atlantic followed suit and picked up 1.34 per cent stake in Jio Platforms May 17. The deal was finalised at Rs 6,598.38 crore.
“Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms,” the statement added.
Unique quality
Diverse marquee investors are becoming long-term shareholders of Jio Platforms Ltd (JPL). This is because of a unique set of technologies and platforms under one entity. There are no similar opportunities available anywhere else globally. Experts said that this is the main reason why other companies are investing in Jio Platforms.
Investments by leading global growth investors will enable Jio to scale its ecosystem. It will also reaffirm the firm’s position as a next generation software product and platform company.
KKR’s background
KKR was founded in 1976. It has a long history of building leading global enterprises and successfully investing in businesses in the technology sector. Among the companies KKR has invested in are BMC Software, ByteDance and GoJek. The investments have been done through its private equity and technology growth funds. Since inception, KKR has invested over USD 30 billion (total enterprise value) in tech companies. Its technology portfolio currently has more than 20 companies across the technology, media and telecom sectors.
Mukesh Ambani happy
Mukesh Ambani, CMD of Reliance Industries expressed satisfaction with the deal. “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march. It will certainly help in growing and transforming the Indian digital ecosystem for the benefit of all Indians.”
KKR, he said, has a proven track record of being a valuable partner to industry-leading franchises. “We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio,” stated Ambani.
Agencies
