Abu Dhabi Fund Mubadala to Invest INR 9,093.60 cr in Jio Platforms
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Abu Dhabi based sovereign investor Mubadala will pick 1.85 per cent stake in Reliance Jio Platforms, a unit of Mukesh Ambani owned Reliance Industries (RIL) for an investment of INR 9,093.60 cr.
Over the last six weeks, six global technology and growth investors—Facebook, Silver Lake, Vista, General Atlantic, KKR and Mubadala—have announced aggregate investments of INR 87,655.35 cr into Jio Platforms. Amongst these, social media giant Facebook has infused largest capital of INR 43,574 crore ($5.7 bn) into the company.
The deal with Mubadala comes at an equity value of INR 4.91 lakh crore and an enterprise value of INR 5.16 lakh crore, as per a company statement.
“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,” RIL Chairman Ambani stated.
Mubadala Development Company is known for its information and communications technology investments, which include cognitive computing, ICT infrastructure, telecoms, and satellite operations. It established its ventures arm in 2017 and currently manages several venture funds in the US, Europe and Middle East. The investment fund operates across a diverse portfolio, which includes advanced manufacturing, semiconductors, metals & mining, pharmaceutical and medical technology, renewable energy and utilities, spanning more than 50 countries globally with approximately USD 229 bn worth assets under management.
"We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities,” Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company stated in RIL’s statement.
“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 that the platform company will further the development of the digital economy."
The deal with Mubadala will further help RIL to cut its debt of INR 1.53 trillion, as the company targets to become a net debt free company by March 2021. In April, the company stated that it will achieve the zero net debt status ahead of schedule as it is confident about completing the capital raising programme totalling over INR 1.04 lakh crore by Q1 of the current financial year. After today’s deal, RIL is short of INR 16,337 cr of this target.
Jio Platforms is the umbrella entity of phone and data unit Jio Infocomm and several other app platforms such as JioMart, JioSaavn and JioCinema.