Abu Dhabi Investment Authority Invests Rs 5,683 Crore In Jio For 1.16% Stake

Abu Dhabi Investment Authority hjas invested Rs 5,683 crore in Reliance Jio

Reliance Industries said on Sunday that Abu Dhabi’s state-owned company ADIA (Abu Dhabi Investment Authority) will purchase a 1.16 per cent stake in its digital services arm Jio Platforms for Rs 5,683.50 crore through a wholly-owned subsidiary. With the ADIA deal, Jio Platforms – which houses Reliance Industries’ telecoms arm Reliance Jio Infocomm – has raised a total Rs 97,885.65 crore from global investors in less than seven weeks. US-based Facebook and Silver Lake, and Abu Dhabi’s Mubadala are some of the recent investors in the Reliance Industries telecom arm.

Here are 10 things to know about this big story:

  1. Reliance Industries – which has sold 21.06 per cent of Jio Platforms to investors for Rs 97,885.65 crore in less than seven weeks – said the transaction is subject to regulatory and other customary approvals.

  2. The investment comes days after Reliance Industries announced that US-based Silver Lake and co-investors will increase their stake in Jio Platforms to 2.08 per cent from 0.93 per cent committed earlier, and Abu Dhabi’s Mubadala Investment Company will take a 1.85 per cent equity stake in Reliance Industries’ digital services arm.

  3. Earlier, US-based Facebook, Vista Equity Partners, General Atlantic and KKR had committed investment in Jio Platforms. While Facebook will purchase 9.99 per cent of Jio Platforms, Silver Lake Partners and its co-investors have committed to take a 2.08 per cent stake in the company. Among other investors, Vista Equity Partners will pick a 2.32 per cent stake, General Atlantic 1.34 per cent, KKR 2.32 per cent and Mubadala 1.85 per cent.

  4. ADIA prudently invests funds on behalf of the Abu Dhabi government through a strategy focused on long-term value creation, Reliance Industries said. ADIA manages a global investment portfolio diversified across more than two dozen asset classes and sub-categories.

  5. The deals will help Reliance Industries meet the goal set by its chairman Mukesh Ambani to eliminating its net debt by the end of the current financial year.

  6. “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities,” said Mukesh Ambani. “This investment is a strong endorsement of our strategy and India’s potential.”

  7. On Friday, Reliance Industries shares closed flat at Rs 1,580.60 apiece on the BSE, having touched a record high during the session. The benchmark S&P BSE Sensex index rose 0.90 per cent, continuing its surge after a day’s pause.

  8. News agency Bloomberg had reported this week, citing people familiar with the matter, that Mubadala Investment Company, Abu Dhabi Investment Authority and Saudi Arabia’s The Public Investment Fund are in discussions with Reliance Industries to invest in its digital arm.

  9. Reliance Jio Infocomm – which started in 2016 – has already decimated several rivals with cut-throat pricing and is counting on Reliance Industries’ retail network to expand into e-commerce.

  10. It provides telecom and digital services under brand Jio, and a connectivity platform to more than 38.8 crore subscribers.

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