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This article is more than 1 year old.

Silver Lake to invest Rs 5,655.75 crore in Reliance Jio Platforms

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This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 percent premium to the equity valuation of the Facebook investment announced last week, Reliance Industries said in a regulatory filing in Monday.

Silver Lake to invest Rs 5,655.75 crore in Reliance Jio Platforms
Private equity firm Silver Lake Partners will invest Rs 5,655.75 crore for 1.15 percent stake in Reliance Jio Platforms, the technology arm of Reliance Industries.
This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 percent premium to the equity valuation of the Facebook investment announced last week, Reliance Industries said in a regulatory filing in Monday.
The current equity valuation of Jio Platforms is 52 percent of the market capitalisation of Reliance Industries.
“Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation," said Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd.
Silver Lake Partners is a US-based PE fund with operations across US and China with $43 billion in combined assets under management globally.
Majority of its investments are across tech and consumer-facing verticals.
Silver Lake has investments in  Airbnb, Alibaba, Twitter, Alibaba, Ant Financial and Motorola. Its investments in India include Eka Software.
“Jio Platforms is one of the world’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualizing a courageous vision. They have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small businesses population,” Egon Durban, Co-CEO and Managing Partner, Silver Lake said.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.
On April 30, Reliance Jio reported a 177 percent rise in profit to Rs 2,331 crore in the March 2020 quarter (Q4) supported by tariff hikes in December and incremental subscriber addition.
Operating revenue for the quarter came in at Rs 14,835 crore, up nearly 27 percent versus Rs 11,715 crore in the year-ago period. It rose 6.2 percent on a QoQ basis, it said in a press release.
The company's subscriber base as of March 31, 2020, was at 38.75 crores, up 26.3 percent YoY. The company added 2.4 crore subscribers in the March quarter. Meanwhile, in December last year, the company had hiked tariffs by up to 40 percent.
 
(Disclaimer:
Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd., the parent company of CNBCTV18.com)
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