Reliance Industries on Saturday announced that its wholly-owned subsidiary – Jio Platforms has raised an additional investment of Rs.4,546.80 from US-based private equity firm Silver Lake and other co-investors.
Silver Lake has already invested Rs.5,655.75 crore in Jio Platforms earlier this month for a fully-diluted equity stake of 1.15 per cent. With the current investment, the PE firm’s stake in Jio Platforms has increased to 2.08.
In a regulatory filing, Reliance Industries said, “Silver Lake and its co-investors will invest an additional Rs. 4,546.80 crore in Jio Platforms, in addition to Rs.5,655.75 crore of investment by Silver Lake announced on May 4, 2020. This brings the aggregate investment by Silver Lake and its co-investors to Rs.10,202.55 crore.”
Reliance’s Jio Platforms has been on a fundraising spree. In less than six weeks, the company has now sold nearly 20 percent of its stake in Jio Platforms to global investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic and KKR thereby raising Rs.92,202.15 crore of investment in less than six weeks.
On Friday, the company announced that Abu Dhabi-based sovereign investor Mubadala Investment Company will invest Rs. 9,093.60 crore to acquire 1.85 per cent equity stake in its subsidiary – Jio Platforms on a fully diluted basis.
Silver Lake’s investment values Jio Platforms at an equity value of Rs.4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore, and will translate into a 2.08 per cent equity stake in Jio Platforms on a fully diluted basis.
“I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries was quoted in the statement.
“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,” Egon Durban, Silver Lake Co-CEO and Managing Partner said in the statement.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Latham & Watkins LLP, Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett LLP acted as legal counsel to Silver Lake.