US investment firm KKR to invest Rs 11,367 crore in Jio Platforms, fifth deal in less than a month
New Delhi | Jagran Business Desk: Reliance Industries Limited (RIL) on Friday announced that US-based investment firm KKR will invest Rs 11,367 crore in Jio Platforms Limited (Jio Platforms) for a 2.32 per cent stake. This will be the fifth deal in four weeks that will inject a combined Rs 78,562 crore in the oil-to-telecom conglomerate to help it pare debt.
"This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR's largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis," said RIL in a statement.
"Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers," the statement said.
With this, Jio Platforms will get a combined Rs 78,562 crore from the five investments. On April 22, Facebook said it will buy 9.99 per cent stake in Jio for Rs 43,574 crore. Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore.
Then on May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. On May 17 global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.
"KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR's global platform, industry knowledge and operational expertise to further grow Jio," said Chairman and Managing Director Mukesh Ambani in a statement.
Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek, through its private equity and technology growth funds.
Since inception, the firm has invested over USD 30 billion (total enterprise value) in tech companies, and its technology portfolio currently has more than 20 companies across the technology, media and telecom sectors.
In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006.
KKR, he said, has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.
"We are looking forward to leveraging KKR's global platform, industry knowledge and operational expertise to further grow Jio."
Henry Kravis, Co-Founder and Co-CEO of KKR, said, "Few companies have the potential to transform a country's digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution."
"We are investing behind Jio Platforms' impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR's commitment to supporting leading technology companies in India and Asia Pacific," he said.
KKR is making the investment from its Asia private equity and growth technology funds. 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. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.
(With PTI inputs)
Posted By: Aalok Sensharma