Reliance Industries Limited (RIL) and Jio Platforms announced today that Silver Lake will invest Rs 56.55 billion into Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.90 trillion and an enterprise value of Rs 5.15 trillion and represents a 12.5 per cent premium to the equity valuation of the Facebook investment announced on April 22, 2020.
In the wake of the severe economic disruptions caused by the Covid-19 pandemic, globally and especially within India, this partnership with one of the most renowned tech-investors globally, Silver Lake, has special significance. Comprehensive digitisation will be a vital component of the revitalisation of the Indian economy. It is our strong conviction that no one should be deprived of the tremendous new opportunities, including those for new employment and new businesses, embedded in India’s 360-degree digital transformation.
Commenting on the transaction with Silver Lake, Mukesh Ambani, Chairman and Managing Director, RIL, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation.”
Commenting on the investment, Egon Durban, Silver Lake Co- Cheif Executive Officer and Managing Partner, said, “Jio Platforms is one of the world’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualising a courageous vision. They have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small businesses population. The market potential they are addressing is enormous, and we are honored and pleased to have been invited to partner with Mukesh Ambani and the team at Reliance and Jio to help further the Jio mission.”
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.