RIL Acquires Majority Stake In skyTran
Grow Your Business, Not Your Inbox
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Reliance Strategic Business Ventures Ltd (RSBVL), a wholly owned subsidiary of Reliance Industries Limited, on Sunday announced to have acquired additional equity stake in its investee company skyTran for $26.76 million, increasing its shareholding to 54.46 per cent on a diluted basis. Investee companies are also known as portfolio companies.
skyTran is a US-based technology startup that was founded in 2011 under the laws of Delaware. The startup claims to have made a breakthrough in passive magnetic levitation and propulsion technology for implementing personal transformation systems aimed at solving the problem of traffic congestion globally.
The law firms Convington & Burling LLP and Freshfields Bruckhaus Deringer US LLP acted as legal counsel and IP counsel respectively to Reliance Industries.
“Our acquiring majority stake in skyTran reflects our commitment to invest in building futuristic technologies that would transform the world. We are excited by skyTran’s potential to achieve an order of magnitude impact on high speed intra and inter-city connectivity and its ability to provide a high speed, highly efficient and economical ‘Transportation-As-A-Service’ for India and the rest of the world,” said Mukesh Ambani, chairman and managing director of Reliance Industries on the investment.
“We firmly believe that non-polluting high speed personal rapid transportation systems will help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution.”
Reliance had acquired 12.7 per cent in skyTran in 2018. A year later, Reliance increased its stake to 17.37 per cent and to 26.3 per cent in April 2020.