Sovereign wealth fund Abu Dhabi Investment Authority (ADIA) is set to invest $750 million (Rs 5,683.5 crore as per current exchange rates) in Jio Platforms, the telecom subsidiary of diversified conglomerate Reliance Industries (RIL).
ADIA will hold 1.16% stake in the company on completion of the deal, a statement said. The funding is raised at valuations similar to the earlier deals -- an equity valuation of $65 billion (Rs 4,91,000 crore) and an enterprise value of $68.3 billion (Rs 5,16,000 crore).
“The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners,” Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said.
Founded in 1976, ADIA has investments across multiple geographies and asset classes such as equities, fixed income, alternative investments, real estate and private equity (PE). It started PE investments in 1989 and has operations in the Americas, the Europe, the Middle East and Africa (EMEA) region, and the Asia Pacific region.
“I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities,” Mukesh Ambani, chairman and managing director of RIL, said.
With the latest investment, Jio has raised close to $13.2 billion (Rs 1,00,000 crore) from global investors, including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA.
The total also includes an additional investment of $602 million (Rs 4,546.80 crore) made by Silver Lake and undisclosed co-investors in the company, apart from the $747.3 million (Rs 5,655.75 crore) the former contributed last month, according to a separate statement issued by RIL on Friday. The Menlo Park headquartered PE firm has invested $1.35 billion (Rs 10,202.55 crore) in the company so far, it showed.
“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,” Egon Durban, co-CEO and managing partner of Silver Lake, said.
Investment bank Morgan Stanley acted as the financial advisor, while law firms AZB & Partners and Davis Polk & Wardwell were the legal counsels for RIL. Silver lake was represented by law firms Latham & Watkins, Shardul Amarchand Mangaldas and Simpson Thacher & Bartlett.
Jio has 338 million subscribers and a portfolio of several digital companies. The capital infusion is expected to help RIL pare its debt. As of March 31, the company had a gross debt of Rs 3.4 lakh.