Saudi and US-based businesses eye stake in Reliance’s Jio – Bloomberg

Jio Platforms

More are eyeing a share of Reliance Industries Ltd’s $65-billion digital unit Jio Platforms, according to Bloomberg News, setting them up to be a part of a growing list of organisations that have recently invested in the Mumbai, India-based company. 

KEY POINTS

  • India’s Jio Platforms attracts more interest from potential investors
  • New York-based General Atlantic and the Saudi sovereign wealth fund said to be interested
  • Follows on from Facebook and Vista Equity Partners deals
  • Joi has already raised $8 billion

US private equity firm General Atlantic is considering investing about $850 million to $950 million in the Mumbai-based company, a Bloomberg report said, citing people with knowledge of the matter.

The deal could be completed as soon as this month, though no agreement has been finalised and plans may change, it added.

Saudi Arabia’s Public Investment Fund (PIF) is also considering to buy a minority stake in Jio, Bloomberg said in a separate report.

General Atlantic declined to comment on the report, while Jio and PIF did not immediately respond to news agency Reuters request for comment.

Hours earlier on Friday, Reliance Industries announced a $1.5 billion stake sale in Jio to Vista Equity Partners, the third deal in just over two weeks.

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The conglomerate cut a $5.7 billion deal with Facebook for a 9.99% stake in Jio on April 22 and a few days later, it secured a $750 million investment from private equity firm Silver Lake.

Together the three deals will inject a combined $8 billion in the telecoms-to-energy group and help it pare its debt.

Vista’s investment gave Jio an equity value of 4.91 trillion rupees (approximately $65 billion) and an enterprise value of 5.16 trillion rupees, said Reliance, controlled by billionaire tycoon Mukesh Ambani.

The potential investments from New York-based General Atlantic and the Saudi sovereign wealth fund, which manages over $300 billion in assets, would inject money on top of the $8 billion which Jio has already raised.

Saudi’s PIF has been buying minority stakes several companies. Last month, it disclosed an 8.2% stake in coronavirus-hit Carnival Corp, sending the cruise operator’s shares up nearly 30% higher.

The team at Platform Executive hope you have enjoyed the ‘Saudi and US-based businesses eye stake in Reliance’s Jio – Bloomberg‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Ismail Shakil and Shubham Kalia in Bengaluru. Editing by Arun Koyyur.

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