Saudi, US firms eye stakes in Reliance Jio

Saudi Arabia’s Public Investment Fund (PIF) is also considering to buy a minority stake in Jio.

By: REUTERS | POSTED BY SHWETA GANJOO
| Updated on: May 09 2020, 16:48 IST
General Atlantic is considering investing about $850 million to $950 million in Jio Platforms.
General Atlantic is considering investing about $850 million to $950 million in Jio Platforms. (REUTERS)

Two more firms are eyeing a share of Reliance Industries Ltd's $65-billion digital unit Jio Platforms, according to Bloomberg News, setting them up to be a part of a growing list of firms that have recently invested in the Indian company.

US private equity firm General Atlantic is considering investing about $850 million to $950 million in the Mumbai-based company, a Bloomberg report said, citing people with knowledge of the matter.

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The deal could be completed as soon as this month, though no agreement has been finalized and plans may change, it added.

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Saudi Arabia's Public Investment Fund (PIF) is also considering to buy a minority stake in Jio, Bloomberg said in a separate report.

General Atlantic declined to comment on the report, while Jio and PIF did not immediately respond to Reuters request for comment.

Hours earlier on Friday, Reliance Industries announced a $1.5 billion stake sale in Jio to Vista Equity Partners, the third deal in just over two weeks.

The conglomerate cut a $5.7 billion deal with Facebook for a 9.99% stake in Jio on April 22 and a few days later, it secured a $750 million investment from private equity firm Silver Lake.

Together the three deals will inject a combined $8 billion in the telecoms-to-energy group and help it pare its debt.

Vista's investment gave Jio an equity value of 4.91 trillion rupees ($65 billion) and an enterprise value of 5.16 trillion rupees, said Reliance, controlled by billionaire tycoon Mukesh Ambani.

The potential investments from New York-based General Atlantic and the Saudi sovereign wealth fund, which manages over $300 billion in assets, would inject money on top of the $8 billion which Jio has already raised.

Saudi's PIF has been buying minority stakes several companies. Last month, it disclosed an 8.2% stake in coronavirus-hit Carnival Corp, sending the cruise operator's shares up nearly 30% higher.

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First Published Date: 09 May, 16:48 IST
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