American Private Equity firm Silver Lake to invest ₹5,655.75 crore in Reliance Jio for a 1.15% stake.
In less than a two week announcing a ₹43,574 crore deal with Facebook, Reliance industries today announced a new that American Private Equity firm Silver Lake to invest Rs 5,655.75 crore in Reliance Jio for a 1.15% stake. This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore.
Reliance Industries has a vision to become zero net debt company before March 2021. Now this deal by Reliance Jio will help Reliance Industries to reduce debt.
“Reliance Industries Limited and Jio Platforms Limited announced today that Silver Lake will invest Rs 5,655.75 crore into Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5% premium to the equity valuation of the Facebook investment announced on April 22, 2020,” RIL and Jio in a joint statement said Monday.
“…Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said in a statement.
“…They (Jio Platforms) have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small businesses population. The market potential they are addressing is enormous…,” said Egon Durban, Silver Lake Co-CEO and Managing Partner.
“In the wake of the severe economic disruptions caused by the COVID-19 pandemic, globally and especially within India, this partnership with one of the most renowned tech-investors globally, Silver Lake, has special significance. Comprehensive digitisation will be a vital component of the revitalisation of the Indian economy,” Jio Platforms said in the statement.
“The investment by Silver Lake is underlines further testament to the world-class digital platform that Jio has built, powered by leading technologies, such as Broadband connectivity, Smart Devices, Cloud and Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain,” it added.