Silver Lake and Jio Deal – Silver Lake buys stake in Jio for Rs 5656 crore


As soon as the deal for Jio- Facebook is closed with a 9.99% stake. Reliance Industries Ltd. brought in another investor for its digital and telecom assets. With the speed, its rising and making productive decisions for the company in the midst of crisis is of very helpful for the economy.

This has come nearly after two weeks of Facebook’s investment for a 10% stake in Jio’s platform to expand the footprint in its biggest global market.

Silver Lake, an American private equity firm is willing to invest close to Rs 5656 crore in the newly created subsidiary and one of the most valued companies of India. This investment by Silver Lake will take the equity value of the company to Rs. 4.9 lakh crore, which is a 12.5% premium to Facebook’s investment.

The company has not disclosed how much stake the private equity firm is going to hold up in Jio platforms. Unlike the previous transaction, it is to be retained by Jio and not with the parent company.

Earlier Reliance announced plans to restructure the telecom and digital business by the 100% ownership of the platform consolidating the apps, artificial intelligence and cloud initiatives as it owns the mobile telecom and broadband business with huge funded investment for its long- term growth and strong business outlook.

This entity’s debt will be transferred to Reliance Industries Ltd; the parent company will receive 108000- crore optionally convertible preference shares of Jio platforms.
The restructuring was planned to aim at housing the digital assets within a debt-free entity and making the separate new entity comparing to Alphabet Inc and such leading e-businesses.

Over the last few years, Mukesh Ambani has been thoroughly dependent on the new consumer units like retail and telecom to hold up future earnings. These units are likely to contribute to 50% of RIL’s earnings from a few years as of now it contributes 32% stated Ambani in 42nd annual general meeting.

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