К : PTI New Delhi
Update : 7. June 2020 at 20:18:13
This is the eighth investment in HIO platforms in less than seven weeks (Bloomberg).
Reliance Industries said on Sunday that it has 1.16 per cent of its digital division to the Abu Dhabi Authority for Rs. 5,683.50, representing a total financing of Rs. 97,885.65, which will help pay off the debts of the Oil-for-Telecom conglomerate.
This investment estimates the value of Chiyo Platform’s share capital at Rs. 4,91 and the value of the company at Rs. 5,16. ADIA’s investment will be transferred to 1.16% of the shares of Jio Platforms on a fully diluted basis, according to the company.
As a result of this investment, the Hio platform has attracted Rs 97,885.65 in less than seven weeks from leading global investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, AKR, Mubadala and ADIA.
The AIDA deal will come a few days after the Abu Dhabi Mubadala sovereign fund Mubadala Investment Co. raised 1.85 per cent for Rs. 9,093.60 on the Hyo platform on May 5. The month of June takes place. On that day, the Silver Lake private equity fund Rs. 4,546.80 for an additional share of 0.93% in the Chiyo platform.
With this investment Reliance has sold all its 21%-target shares to Jio Platforms in anticipation of a possible IPO.
Jio Platforms, a wholly owned subsidiary of Reliance Industries Ltd, is a next generation technology company. With 388 million mobile subscribers, Reliance Jio Infocomm Ltd. will remain a wholly owned subsidiary of Jio Platforms.
The deal followed Facebook’s acquisition of a 9.99 percent stake in the company, which houses India’s youngest but largest telecommunications company, on 22 January. April for 43,574 rupees. A few days after this transaction Silver Lake, the world’s largest technology investor, took an interest in the company on 4 January. May for Rs 5,665.75, a 1.15% share in Jio Platforms.
The eighth. May American Vista Equity Partners acquired a 2.32% stake in Jio Platforms for Rs 11,367. The 17th. In May, the global public company General Atlantic acquired 1.34% of the shares of Jio Platforms for Rs. 6.598,38. It was followed by the American private equity giant KKR, which bought 2.32% for Rs 11 367.
The fifth. In June, Silver Lake made additional investments to increase its stake to 2.08%.
Founded in 1976, ADIA is a globally diversified investment institution that invests prudently on behalf of the Government of Abu Dhabi with a strategy focused on long-term value creation. It manages a global investment portfolio diversified across more than two dozen asset classes and subclasses.
Mukesh Ambani, President and CEO of Reliance Industries, said I am pleased that ADIA, with more than four decades of successful long-term value investments around the world, is partnering with Jio Platforms in its mission to place India at the forefront of digital technology and create opportunities for inclusive growth. This investment is an important support to our strategy and to India’s potential.
The transaction is subject to the approval of regulatory and other generally accepted authorities.
Gio platforms are at the forefront of the digital revolution in India and can benefit from the significant socio-economic progress and transformative impact of technology on the way people live and work.
The rapid growth of the company, which has established itself as market leader in just four years, is supported by solid experience in strategic implementation. Our investment in Jio is further evidence of ADIA’s ability to leverage its deep regional and industry expertise to invest in leading companies in the global marketplace and with proven partners, said Hamad Shahwan Aldhaheri, Executive Director of ADIA’s Private Equity Division.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, while Davis Polk and Wardwell acted as legal advisors.
Ambani, 63 years old, Chairman and CEO of Reliance, set a goal last August to free his conglomerate of debt by March 2021. But with the agreement on Facebook, the rights issue of 53,125 rupees, private equity investments and other equity deals with companies like Saudi Aramco, the goal should be reached by December.
At the end of the March quarter, Relaance had an outstanding debt of Rs. 3.36.294 and cash of Rev. 1.75.259. After correction for cash, the net debt was Rs. 1.61.035.
Of the outstanding debt, Rs. 2,62,000 is on Reliance’s balance sheet and Rs. 23,000 on Jio’s balance sheet.
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