Silver Lake-Reliance Jio deal: 5 key things you need to know

After Facebook, US-based equity firm Silver Lake announces investing in Reliance’s Jio platforms.

Silver Lake to invest Rs 5,655.75 crore in Reliance’s Jio Platforms (REUTERS)

US-based private equity firm Silver Lake will invest ₹5,655.75 crore in Jio platforms, said Reliance Industries Limited (RIL) and Jio Platforms Limited on Monday.

The deal comes shortly after Facebook announced investing ₹43,574 crore in Reliance's Jio platforms in exchange of 9.99% stake. The deal also covers WhatsApp-JioMart partnership aimed at the smaller retailers in the country.

Here are five key things you need to know about the latest Reliance Jio-Silver Lake deal.

* The investment is said to value Jio platforms at an equity value of ₹4.90 lakh crore and an enterprise value of ₹5.15 lakh crore.

*Silver Lake's investment represents a 12.5% premium to the equity of valuation of Facebook's investment last month.

 

* Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

*Silver Lake has made investments in top tech companies around the world such as Airbnb, Alibaba, Ant Financial, Alphabet's Verily and Waymo units, Dell Technologies, and Twitter among others.

*Reliance Jio in its release pointed out the cutting-edge technologies it has been working on. This includes Cloud and Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.