Silver Lake Partners, the American private equity giant, has bought one percent of Jio Platforms for $750 million (Rs. 5,655.75 crore) in a deal that values the tech and digital arm of Reliance Industries Ltd (RIL) at $65 billion.
This is the first sizable investment by SLP in India and reaffirms Jio’s technological capabilities and the potential of the business model, even in this Covid-19 world and beyond. This is at a 12.5 percent premium over the FB deal announced on April 22 this year.
Here are the key highlights of the deal:
1. The investment is Rs. 5,656 crore in rupee terms for a 1.15 percent stake
2. At this equity value, this is 52 percent of the total market cap. of Reliance
3. This reaffirms that Jio continues to grab significant global attention for its deep understanding of the Indian markets, the rapid digitisation opportunity post-covid and our capabilities to bring cutting-edge technologies and tools such as AI, Blockchain, AR/VR, Big data into play for all Indians.
4. The world’s largest tech investor is investing in Jio. SLP has a terrific track record of investing in some of the largest and successful tech companies globally such as Twitter, Airbnb, Alibaba, Dell Technologies, ANT Financials, Twitter, Alphabet’s Waymo and Verily amongst others.
5. This is the first sizable investment by SLP in India.
6. This reaffirms Jio’s technolgical capabilities and the potential of the business model even in this Covid-19 world and beyond.
7. This is at a 12.5 percent premium over the FB deal announced on April 22, 2020.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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