Mumbai, May 23:
In less than four weeks, Reliance Jio has struck deals with leading technology giants and private equity firms including Facebook, Silver Lake, Vista Equity and General Atlantic, raising Rs 67,194.75 crore.
According to official sources, on 17 May, Reliance Jio sold a 1.34 per cent to General Atlantic for Rs 6,598.38 crore, while American private equity giant “Silver Lake Partners” bought 1 per cent stake in Jio for Rs 5,655.75 crore. Besides “Facebook” purchased a 9.9 per cent stake in Reliance Jio for Rs 43,574 crore.
COVID-19 pandemic has wreaked havoc on the global economy but could not stop Reliance Industries Chairman & Managing Director Mukesh Ambani in raising,Rs 67,194.75 crore from technology leaders and investors.
The details of the deal are: Facebook: Menlo Park-headquartered “Facebook” purchased a 9.9 per cent stake in Reliance Jio for Rs 43,574 crore. The deal announced in April will help Mark Zuckerberg-owned social media giant place a firm foothold in India. The deal that valued Jio at Rs 4.62 lakh crore (65.95 billion) was Facebook’s biggest since 2014, when it bought WhatsApp for USD 22 billion. Jio in return can significantly cut debt of Reliance conglomerate.
Silver Lake Partners: Less than two weeks later, private equity giant Silver Lake Partners bought 1 per cent stake in Jio for Rs 5,655.75 crore. The deal with the American firm takes the telecom enterprise’s value at Rs 5.15 lakh crore - a 12.5 premium to the value indicated by the social media network.
Vista Equity: US-based private equity firm Vista Equity Partners picked up a 2.32 per cent stake in Jio for Rs 11,367 crore. The firm that runs the world’s largest tech-focused fund. This investment valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Vista’s investment is at a 12.5 per cent premium over the deal with Facebook. The deal marks Jio’s status as a next-generation software and platform company.
General Atlantic: On 17 May, Reliance Jio sold a 1.34 per cent to New York-based “General Atlantic”, a private equity firm, for Rs 6,598.38 crore. The deal is General Atlantic’s largest investment in Asia. “This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. General Atlantic’s investment will translate into a 1.34 per cent equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement. General Atlantic is a leading global growth equity firm with a 40-year track record of investing in the technology, consumer, financial services and healthcare sectors.
Raju Vernekar is a Media Professional based in Mumbai and is a regular contributor of Imphal Times. He had served as Chief Reporter at Free Press Journal (1996 – 2015 ). His Activities includes writing for different news papers, script writing/production for TV channels, Films Division. Writing poems in Marathi, Hindi, English, Guiding mass media students and helping people to solve their problems. Raju may be contacted at [email protected]
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