Reliance Industries Limited and Jio Platforms Limited have announced that Abu Dhabi-based sovereign investor Mubadala Investment Company, will invest ₹ 9,093.60 crore in Jio Platforms. As Mubadala invests in Jio Platforms, the total investment in Jio goes up to ₹ 87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala in less than six weeks (See: Telecom deals will transform mobile payments in India.)
Mubadala’s investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis. The deal comprises an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading DIGITAL NATION in the world. 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.”
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “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. 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.”
Mubadala invests and partners to advance Abu Dhabi’s diversified, globally integrated economy across sectors that are driving global growth and addressing critical challenges. A significant aspect of this mandate is transformative information and communications technology investments which include cognitive computing, ICT infrastructure, telecoms, and satellite operations.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.
Jio Platforms Limited is a wholly-owned subsidiary of Reliance Industries Limited, and is the parent company to Reliance Jio Infocomm Limited.