KKR to invest ₹11,367 cr. in Jio for 2.32% stake

Investment values unit at ₹4.91 lakh cr.

Private equity major KKR has agreed to buy 2.32% stake in Reliance Industries’ wholly owned digital subsidiary Jio Platforms Ltd. for ₹11,367 crore, making it KKR’s largest investment in Asia.

With this transaction, Jio Platforms assumes an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. Over the last month, leading technology investors such as Facebook, Silver Lake, Vista and General Atlantic had announced aggregate investments of ₹78,562 crore in Jio Platforms. Commenting on the deal, Mukesh Ambani, CMD, Reliance Industries, said, “We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio.”

Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.

Henry Kravis, co-founder and co-CEO of KKR, said, “We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team.”

KKR is making the investment in Jio from its Asia private equity and growth technology funds.

“These divestments are credit positive because proceeds from sales of the stakes will be used for debt reduction and bring the company closer to its target of reducing its net debt to zero by March 2021,” said Moody’s Investors Service.

In total, RIL has so far announced the divestment of a 18.01% stake in Jio Platforms for ₹78,560 crore ($10.5 billion). Proceeds from these divestments alone will help the company pare around 49% of its net debt of ₹1.6 trillion ($21.4 billion) outstanding as of March 31, 2020.

Reliance Industries’ shares fell 0.59% to ₹1,431.6 on the BSE in a weak Mumbai market on Friday.

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Printable version | Jun 4, 2020 5:50:58 PM |

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