Reliance Industries Limited (RIL) and Jio Platforms have announced that Silver Lake and its co-investors will invest an additional Rs 45.468 billion in Jio Platforms, over and above the Rs 56.55 billion investment announced by Silver Lake on May 4, 2020.
This brings the aggregate investment by Silver Lake and its co-investors in Jio Platforms to Rs 102.02 billion. Silver Lake’s investment values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion, and will translate into a 2.08 per cent equity stake in Jio Platforms on a fully diluted basis.
With this investment, Jio Platforms has raised Rs 922.02 billion from leading technology investors in less than six weeks.
Commenting on the aggregate investment brought by Silver Lake, Mukesh Ambani, chairman and managing director, RIL, said, “Silver Lake and its co-investors are valued partners as we continue to grow and transform the Indian digital ecosystem for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships, as we drive the Indian Digital Society’s transformation. I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement.”
Further, Egon Durban, Co- chief executive officer (CEO) and managing partner, Silver Lake, said, “We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world’s most remarkable technology companies.”
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to RIL and AZB and Partners and Davis Polk and Wardwell acted as legal counsels. Latham and Watkins LLP, Shardul Amarchand Mangaldas and Co and Simpson Thacher and Bartlett LLP acted as legal counsels to Silver Lake.