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Saudi, US Equity Firms planning to invest in Reliance Jio

By: Rohan Pal, The Mobile Indian, New Delhi Last updated : May 09, 2020 11:28 am

As per a report, multiple Saudi companies and US firms are looking to invest in Reliance Jio Platforms.
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Reliance Jio will reportedly get a fresh round of investment from Saudi and US firms. As per a report, multiple Saudi companies and US firms are looking to invest in Reliance Jio Platforms. 

 

As per a report by Bloomberg, The Public Investment Fund is looking to purchase a minority stake in Jio Platforms. The report highlights that deliberations are ongoing and might not lead to a transaction. The report further highlights that Saudi Arabian Oil Co is also looking to buy stakes in Jio Platforms. The report says that Reliance Jio is in talks with the company to sell an estimated $15 billion stake in its oil-and-chemical business. 

 

Furthermore, General Atlantic is another company that is looking to invest in Jio Platforms. The report highlights that the private equity firm is considering to invest about $850 million to $950 million in Jio Platforms. The report says that the deal could be completed as soon as this month, though no agreement has been finalized and plans may change. 

 

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Previously, US-based Vista Equity Partners Ltd has announced an investment of Rs 11,367 crore in Reliance Jio Platforms. With this, the equity firm will buy a 2.3 per cent stake in Jio Platforms.

 

The investment values Jio Platforms at an equity value of Rs 4.91 lakh crores and an enterprise value of Rs 5.16 lakh crores. Vista Equity Partners’ have more than $57 billion in capital commitments across various sectors and it was founded in the year 2000.

 

Facebook acquired a 9.9 per cent stake in Jio Platforms for Rs 43,574 crore. This makes Facebook Jio Platform largest minority shareholder and it is said be to the largest investment for a minority stake by a technology company around the world and largest FDI investment in the technology sector in India. 

 

The second investment came from Silver Lake Partners that invested in the company for Rs 5,655 crore. The company has revealed that the investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 per cent premium to the equity valuation of the Facebook investment announced on April 22, 2020.



 


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Tags: Reliance Jio

 

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