On Friday, Reliance Industries announced the sale of a 2.32% stake in its digital unit to U.S. private equity giant KKR. This is KKR’s largest investment in Asia.
The company stated that this deal makes Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. It further said in the statement that with the KKR’s largest investment till now in Asia, 2.32% equity stake will be translated in Jio Platforms on a fully diluted basis.
Moreover, recently Facebook picked up a 9.99% stake in the company.
The world’s biggest technology investor, Silver Lake, bought a 1.15% stake in Jio Platforms. That stake was worth ₹5,665.75 crores.
On May 8, U.S.-based Vista Equity Partners bought 2.32% stake in Jio Platforms for ₹11,367 crores. Further, on May 17, global equity firm General Atlantic picked up 1.34% stake in Jio Platforms for ₹6,598.38 crores.
The statement made by the company said that Jio-platforms is a next-generation technology platform. Further, it said that Jio-platforms, a subsidiary, wholly-owned by Reliance industries, focusses on delivering affordable and quality digital services across the nation. Jio has 388 million subscribers.
Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector. These investments include BMC Software, ByteDance and GoJek. KKR made these investments through its private equity and technology growth funds.
Since inception, the firm has invested over USD 30 billion (total enterprise value) in tech companies. The firm’s technology portfolio currently has more than 20 companies across the technology, media and telecom sectors.
Reliance Chairman, Mukesh Ambani- Delighted To Welcome KKR
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, expressed their happiness and welcomed KKR. KKR is the world’s most respected financial investors. Ambani said that India will be benefitted by the partnership of Jio and KKR.
KKR, he said, has a proven track record of being a valuable partner to industry-leading franchises. He further talked about the commitment of KKR to India.
Co-Founder and Co-CEO of KKR, Henry Kravis said that for further growth of Jio they are leveraging KKR’s platform, knowledge of their industry, and operational expertise. He further said that Jio comprises potential to change a country’s digital ecosystem.
KKR is investing through its Asia private equity and growth technology funds. The transaction is subject to regulatory and other customary approvals.