Silver Lake and its co-investors have decided to invest an additional Rs 4,546.8 crore in Jio Platforms, in addition to the Rs 5,565.75 crore investment in early May, Reliance Industries and Jio Platforms announced today. The investment translates into a 0.93% equity stake in Jio Platforms on a fully diluted basis. The stake sale announcement comes less than 24 hours after Jio announced the stake sale of 1.85% to Abu Dhabi based Mubadala at Rs 9,093.6 crore.
This is the seventh minority stake sale announcement from Jio in the last 6 weeks raising investments worth Rs 92,202.15 crore with a stake sale of 19.9% as of today. Silver Lake now has picked up a 2.08% stake in Jio Platforms, in two separate transactions.
Facebook, Vista, KKR, General Atlantic, and Mubudala are the other investors which have recently picked up a stake in Jio Platforms. Facebook acquired the largest minority stake at 9.99%, followed by Vista and KKR at 2.32%. Silver Lake has a 2.08% stake, Mubadala has 1.85% stake with General Atlantic at 1.34% having the smallest minority stake.
“Silver Lake and its co-investors are valued partners as we continue to grow and transform the Indian digital ecosystem for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships, as we drive the Indian Digital Society’s transformation. I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement.”
Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd
Commenting on the investment, Mr. Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world’s most remarkable technology companies.”
The Silver Lake stake sale is subject to regulatory and other customary approvals. As with other stake stales, Morgan Stanley continued to the financial advisor for Reliance Industries with AZB & Partners and Davis Polk & Wardwell as the legal counsels.