Reliance Jio Deal: The purchase of a 2.32% stake in Jio Platforms is KKR's biggest investment in Asia
Reliance Industries said on Friday that KKR, a US-based private equity firm, will invest Rs 11,367 crore to buy a 2.3 per cent stake in Jio Platforms. This marks the fifth fundraising deal in a month for Reliance Industries' subsidiary Jio Platforms, after investments by Facebook, General Atlantic, Silverlake and Vista Equity Partners. The five deals will inject a combined Rs 78,562 crore in the oil-to-telecom conglomerate's digital services entity that houses Reliance Jio Infocomm to help it pare debt. The transaction is subject to regulatory and other customary approvals.
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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, Reliance Industries said in a statement released early on Friday.
This is KKR's largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis, said the conglomerate led by billionaire Mukesh Ambani company said in a statement.
“I am delighted to welcome KKR, one of the world's most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India," said Reliance Industries chairman and managing director Mukesh Ambani.
KKR, founded in 1976, has invested more than $30 billion in tech companies, including China's ByteDance and Indonesian digital payments firm GoJek.
On April 22, Facebook had picked up a 9.99 per cent stake in Jio Platforms on for Rs 43,574 crore.
Within days, Silver Lake - the world's largest tech investor - had bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore.
On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.
And on May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries provides digital services across India, with more than 388 million subscribers.
Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek, through its private equity and technology growth funds.