Jio Platform is going to raise Rs 13,640.4 crore by selling its 1.85 percent stake to Mubadala Investment Co. who is the second-largest sovereign investor and also an additional stake of 0.93 per cent to Silver Lake (US Private Equity Firm) and its co-investors.
These investments are in the sixth tranche of all investments made so far in Jio in the last six weeks.
Mudabala has announced its decision to invest in Jio on June 5 while Silver Lake announced its decision later on the day. Silver Lake has previously invested Rs 5,655.75 crore to buy 1.15 per cent stake in Jio, last month. Investment by Silver Lake will now amount to Rs 10,202.55 crore and it will now have a stake of 2.08 per cent in Jio.
In the sixth tranche of investments, the total money raised by Jio comes at Rs 92,202.15 crore through 19.9 per cent of stake selling to investors. These investments have made Jio’s equity value to come at Rs 4.91 lakh crore and enterprise value to come at Rs 5.16 lakh crore.
In a statement issued on June 5, Reliance Chairman – Mukesh Ambani said, “Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefiting from Mubadala’s experience and insights from supporting growth journeys across the world.
In his later statement, he said, “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”.
Managing Director (MD) of Mubadala, Khaldoon Al Mubarak on the company’s decision to invest in Jio said, “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 that the platform company will further the development of the digital economy.
Co-CEO of Silver Lake, Egon Durban also issued a statement on the company’s decision to invest in Jio in which he said, “We are excited to increase our exposure and bring more of our investors into this opportunity. 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”.
In the deal, Morgan Stanley acted as the financial advisor of Jio while AZB & Partners and Davis Polk & Wardwell acted as a legal counsel for both Mubadala and Silver Lake. On Bombay Stock Exchange, RIL Shares went up to Rs 1,617.70 on Friday and closed at almost the same price due to which Senex gained 0.9 per cent.