India’s Reliance Jio Platforms to sell $750 million stake to Abu Dhabi Investment Authority – TipsClear

Mukesh Ambani Has awarded the seventh major investor for its telecom business in just several weeks.

On sunday, reliance live The platforms said it would sell a 1.16% stake to the Abu Dhabi Investment Authority (ADIA) for $ 750 million, continuing its lucrative campaign of investment at the height of the global epidemic.

Three-and-a-half-year-old digital unit of oil-retail giant Reliance Industries The most valuable firm in India, has now secured approximately $ 13 billion from seven investors, including Facebook, and the US private equity firm Silver Lake, selling a nearly 20% stake to General Atlantic.

Today’s announcement of ADIA, one of the world’s largest investors, is Reliance’s third deal Jio Platforms, India’s largest telecom operator with more than 388 million subscribers, has secured only secure space this week.

Jio Platforms said that earlier this week it was selling a $ 1.2 billion stake to Abu Dhabi-based sovereign firm Mubadala. On Friday, it also announced that the U.S. Private equity firm Silver Lake is pumping an additional $ 600 million to increase its stake in Jio to 2.1%.

The deal captures the growing appeal of Jio platforms to foreign investors looking for a slice of the world’s second largest Internet market. Jio, which began its commercial operations in the second half of 2016, offered mobile data and voice calls at market cut rates.

“The incumbent players in India (Airtel, Vodafone, Idea, BSNL) acted opposite their position anywhere in the world when a new player emerged in the market. The current players expect the newcomers to compete aggressively at a price. They often lower their values ​​- for some time to reduce subsequent attraction. Newcomer often complains to regulators about anti-incumbency practices, ”said Mahesh Uppal, director of communications consultancy firm Com First.

“In India, the opposite happened. It was the current players who ran to the regulators over complaints. So we saw a major misscall from the incumbent players, who missed any major steps before the launch of Jio, ”he said.

India has emerged as one of the largest global battlefields for Silicon Valley and Chinese firms, which seek to win over the country’s 1.3 billion people, most of whom live without smartphones and Internet connections.

Media reports have claimed in recent weeks that Amazon is considering buying at least $ 2 billion worth of bets in India’s third-largest telecom operator, Bharti Airtel, while Google’s second-largest telecom operator, Vodafone Idea Negotiated for a similar deal.

Hamad Shahwan Aldaheri, who oversees private equity deals at ADIA, said the Jio platform is poised to benefit from major socio-economic development and the “transformative impact of technology on how people live and work”.

“The rapid growth of the business, which has established itself as a market leader in just four years, is built on a strong track record of strategic execution. Our investment in Jio is a demonstration of ADIA’s ability to invest globally in market-leading companies and grow alongside proven partners to attract deep regional and sector expertise, ”he said.

Uppal said the new capital should help Ambani, India’s richest man, further strengthen his commitment to investors when he saw Reliance’s net debt of nearly $ 21 billion fall to zero in early 2021 Promised. The firm had no debt in 2012, but things changed when Jio’s construction accelerated.

Furthermore, Reliance Industries’ core business – oil refining and petrochemicals – has been hit hard by the outbreak of coronovirus. Its net profit fell by 37% in the quarter ended 31 March.

“I am delighted that ADIA, with its track record of four decades of successful long-term value investment, has partnered with Jio Platforms in its mission to take India into digital leadership and generate inclusive growth opportunities. Used to be. This investment is a strong support to our strategy and India’s capability, ”Ambani said.

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