A wholly owned subsidiary of the Abu Dhabi Investment Authority (‘ADIA’) has reached an agreement to acquire a 1.16% stake in leading Indian digital services company, Jio Platforms Limited (‘Jio Platforms’), for approximately $750 million (Rs. 5683 crore) . The transaction is subject to customary regulatory approvals.
Jio Platforms, a wholly owned subsidiary of Reliance Industries Limited, is a next-generation technology platform focused on providing high quality and affordable digital services across India, with more than 388 million subscribers. Jio Platforms is valued at $65 billion.
The acquisition is the latest principal investment by ADIA’s Private Equities Department (PED), across its target sectors of financial services, healthcare, industrials, technology, and consumer products.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work. 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.”
Brief history of investment in Jio Platforms in May-June 2020
April 22:Facebook invests $5.7 billion (₹43,600 crore) for a 9.99% stake.
May 05: US private equity firm Silver Lake invests ₹5,700 crore for a 1.15% stake.
May 08:Vista Equity Partners invests 2.32% stake for ₹11,400 crore.
May 18:General Atlantic obtains 1.34% stake for ₹6,600 crore
May 22:KKR invests ₹11,400 crore for a 2.32% stake.
June 05: Mubadala Investment Company will invest ₹9,093.60 crore for a 1.85% equity stake.
June 06:Silver Lake invests additional ₹4546.80 for 0.93 percent stake
June 07:ADIA invests ₹5683 crore for a 1.16% stake
With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.
Commenting on the additional investment, Egon Durban, Silver Lake Co-CEO and Managing Partner, stated, "We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. 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."
With these investments, Reliance has sold 20.96 per cent equity in Jio Platforms ahead of a potential IPO.
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