Reliance Jio gets Rs 11,367 crore as US equity major KKR buys 2.32% stake
With this, Jio Platforms will get a combined Rs 78,562 crore from the five deals it has struck in the last one month.
United States private equity firm KKR has bought a 2.32% stake in Jio Platforms for Rs 11,367 crore, Reliance Industries Limited said on Friday.
This came exactly a month after Facebook Inc bought a 9.99% stake in Reliance-owned Jio Platforms for Rs 43,574 crore. In the last one month, the Mukesh Ambani-led firm has struck have five deals, including the KKR one, for the sale of minority stake. Earlier, Jio Platforms had raised investment from leading technology investors like Silver Lake Partners, Vista Equity Partners and General Atlantic.
With the latest deal, Jio Platforms will get a combined Rs 78,562 crore from the five investments. The transaction is subject to regulatory and other customary approvals, the company said.
“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 Limited said in a release 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.”
Chairman and Managing Director Mukesh Ambani said KKR and RIL share the “ambitious goal of building a premier Digital Society” in India. “KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years,” he added. “We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio.”
The announcement comes amid the escalating global coronavirus crisis, which has upended lives and businesses across the world, bringing the global economy to a standstill.
Henry Kravis, the co-Founder and joint chief executive officer of KKR, said Jio Platforms is “a true homegrown next generation technology leader” in India, reported News18. “We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” he added.
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