Mubadala Said To Be In Talks To Invest $1b In Reliance’s Jio Platforms
Two insiders reported that Abu Dhabi-based sovereign fund manager Mubadala Investment Company is in talks concerning a $1 billion investment in Reliance Industries Ltd’s Jio Platforms Ltd, according to Deal Street Asia.
The first insider said, “The talks between RIL and Mubadala Investment have been happening over the past few days. Mubadala is keen to buy a little over 1% in Jio Platforms. The deal is likely to happen at a valuation of close to Rs. 5 trillion, which is similar to what has been estimated by the deals agreed upon between Jio and Silver Lake and Vista Equity Partners.”
Reuters reported on Thursday, “Clearly Jio’s platform is attracting a wide range of world-class investors, given its enormous potential to serve one of the world’s largest marketplaces.”
Jio Platforms has acquired investments totaling $10 billion over the last month. Investors include Facebook Inc., KKR & Co., Silver Lake Vista Equity Partners, and General Atlantic.
The insiders’ reported negotiations, if successful, will result in Microsoft and Abu Dhabi-based Mubadala owning part of Jio. The deal looks to relieve RIL of its existing debt of Rs.1.53 trillion.
Reliance Jio Infocomm Ltd’s rapid expansion has majorly contributed to the mounting debt. Bloomberg also found that the Saudi sovereign wealth fund is currently considering investment options in Jio Platforms.
Bloomberg reported, “Saudi Arabia’s $320 billion Public Investment Fund is considering buying a minority stake in Reliance Industries Ltd.’s Jio Platforms unit.”