American private equity firm, Vista Equity Partners, has announced that it will invest $1.5 billion (INR 113.67 billion) in Indian billionaire tycoon Mukesh Ambani's Reliance Industries Limited (RIL) subsidiary Jio Platforms Limited. This investment will help the telecom giant to eliminate a $21.4 billion debt by the end of 2020.
In the past 3 weeks, Reliance Jio has secured 3 hefty investments. Earlier Vista Equity Partners, Facebook invested $5.7 billion late last month, and Silver Lake invested $750 million early this week in the Jio Platform Ltd. With this deal, Vista Equity Partners will get a hold of a 2.32% stake in the Jio Platform, whereas Facebook holds 9.99% stakes, and Silver Lake will have 1.15%. Counting this deal, Mukesh Ambani has sold a 13.46% (about $8 billion) of its telecom subsidiaries stake to date.
RIL managing director Mukesh Ambani said, he is delighted to welcome one of the world's marquee tech investors, Vista Equity Partners, onboard as a valued partner. Vista is like RIL's other partners who share the same vision of continuing to transform and grow the Indian digital ecosystem for the benefit of all Indians.
On this investment, Vista Equity Partners chairman Robert F. Smith said, we believe in the Jio's potential of building a Digital Society for India. Alongside Jio's world-class leadership team and as a global pioneer, Mukesh has established a platform to advance and further scale the data revolution that he started. Vista is more than happy to join Reliance Jio Platforms to deliver exponential growth connectivity across India.
The deal is under the customary and other regulatory approvals. Morgan Stanley will act as financial advisor and Davis Polk & Wardwell, and AZB & Partners will be legal counsels for Reliance Industries. Vista Equity Partners will get the legal counseling from Shardul Amarchand Mangaldas & Co and Kirkland & Ellis LLP.
According to RIL, this deal values its telecom subsidiary at an equity value of INR 4.91 trillion and its enterprise equity value at INR 5.16 trillion. The giant has also mentioned that it is in talks with other investors to sell more of its latest digital and retail businesses to list them. Reliance's other digital businesses include Jio Saavn, JioPay, Jio Cinema, and Haaptik, all under Jio Platforms.
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