UAE fund Mubadala eyes $1 billion stake in Jio
2 min read . Updated: 29 May 2020, 02:00 AM ISTMubadala is keen to buy a little over 1% stake in Jio platforms, says a person aware of the development
MUMBAI : Abu Dhabi-based sovereign fund manager Mubadala Investment Co. is in talks for a potential investment of about $1 billion in Reliance Industries Ltd’s (RIL’s) digital assets subsidiary Jio Platforms Ltd, said two people aware of the development.
“The talks between RIL and Mubadala Investment have been happening over the past few days. Mubadala is keen to buy a little more than 1% in Jio Platforms. The deal is likely to happen at a valuation of close to ₹5 trillion, which is similar to what has been estimated by the deals agreed upon between Jio and Silver Lake and Vista Equity Partners," said one of the persons cited above.
“Clearly, Jio’s platform is attracting a wide range of world-class investors, given its enormous potential to serve one of the world’s largest marketplaces," said Mubadala, according to Reuters, which first reported the news earlier on Thursday.
On Thursday, Mint reported that Microsoft Corp. is also negotiating an investment of as much as $2 billion in Jio Platforms.
If the two transactions are completed, the world’s most valuable firm, Microsoft, and Mubadala will get a slice of Jio Platforms, which has already attracted investments of $10 billion in just a month from marquee investors comprising Facebook Inc., KKR & Co., Silver Lake, Vista Equity Partners and General Atlantic.
Jio Platforms combines all of Reliance’s digital and telecom initiatives, including Jio digital services, mobile and broadband, apps, tech capabilities such as artificial intelligence, Big Data, and Internet of Things, and other investments such as in Den Networks, Hathway Cable, and Datacom Ltd.
The deals will take RIL closer to its ambition of becoming free of its net debt of ₹1.53 trillion as at the end of December at the group level. The company aims to become net-debt free by March next year. RIL’s debt has surged in the past few years, especially due to the aggressive expansion of Reliance Jio Infocomm Ltd.
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