ADIA to invest Rs 5,683.50 crore in Jio Platforms
Mumbai, June 7, 2020
Abu Dhabi Investment Authority (ADIA), a globally-diversified investment institution that invests funds on behalf of the Government of Abu Dhabi, will invest Rs 5,683.50 crore through a wholly-owned subsidiary, in Jio Platforms, a wholly-owned subsidiary of the Mukesh Ambani-led Reliance Industries Limited (RIL), an announcement said here this eveninng.
The announcement was made by RIL and Jio Platforms. It said the investment valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
ADIA’s investment will translate into a 1.16% equity stake in Jio Platforms on a fully diluted basis, a press release from RIL said.
With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.
Jio Platforms is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers. It has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.
"Jio’s vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth," the release said.
Established in 1976, ADIA prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.
RIL Chairman and Managing Director Mukesh Ambani said, “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners.”
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial adviser to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.
Abu Dhabi is one of the seven emirates that make up the United Arab Emirates (UAE) federation. It is also the largest of them.