• Download mobile app
26 Oct 2020, Edition - 1931, Monday

Trending Now

  • Move to ‘kidnap’ Sindh IGP to register FIR against PML-N leaders ‘brainchild’ of Pak interior minister Ijaz Shah
  • Kerala Police Act amendment could end up gagging the media
  • Tamil Nadu CM Edappadi K Palaniswami promises free vaccination for all

Business

Abu Dhabi’s Mubadala to invest Rs 9,093.60 cr in Mukesh Ambani’s Jio Platforms

https://www.businesstoday.in/

Reliance Industries Limited and Jio Platforms Limited have announced the Abu Dhabi-based sovereign investor Mubadala Investment Company (Mubadala) will invest Rs 9,093.60 crore in Jio Platforms at an equity value of 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Mubadala’s investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis, the company said.

Reliance has now sold a combined 19% interest in Jio Platforms and the current investment — sixth in less than six weeks — takes Jio Platforms’ total funding to Rs 87,655.35 crore from some of the world’s leading global technology and growth investors, including Facebook, Silver Lake, Vista Equity Partners, General Atlantic and KKR.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey. With Jio’s network of investors and partners, we believe the platform company will further the development of the digital economy.”

Mubadala invests and partners to advance Abu Dhabi’s diversified economy across transformative information and communications technology sectors, including cognitive computing, ICT infrastructure, telecoms and satellite operations. It established its ventures arm in 2017 to partner early with innovative businesses and currently manages several venture funds in the US, Europe and the Middle East.

JPL was created as a subsidiary of RIL in October last year to bring together all digital and mobility businesses under one roof. The new entity has become the parent of Reliance Jio Infocomm and applications like MyJio, JioTV, JioCinema, JioNews and JioSaavn, besides content-generation ventures. Thus, the operating company Reliance Jio became a step-down subsidiary of RIL.

For making JPL debt-free, the parent company has infused Rs 1.08 lakh crore in it. They want to build JPL like Alibaba and Google, which claim high valuations in the stock markets. RIL has been using the cash flow from its flagship petroleum refining business to build the telecom and retail subsidiaries all these years. The Indian conglomerate has spent about Rs 4 lakh crore to build Reliance Jio.

Subscribe To Our Newsletter

COIMBATORE WEATHER