Brookfield Infrastructure to invest Rs 25,215 cr for acquisition of 100% stake in Reliance Jio Infratel
Reliance Industries (RIL) jumped 2.53% to Rs 1545.40 after the company said private equity firm Vista Equity Partners will invest Rs 11,367 crore in Jio Platforms for a 2.32% stake.This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, RIL said in a statement on Friday. This is Jio Platforms' third deal after Facebook and Silver Lake's share acquisition plans over the last two weeks.
Vista's investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis, making Vista the largest investor in Jio Platforms behind RIL and Facebook. Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.
Vista is a global investment firm focused on empowering and growing enterprise software, data and technology enabled companies that are reinventing industries and catalyzing change. While Jio Platforms, is a wholly-owned subsidiary of RIL, is a technology company building a digital society for India by bringing together Jio's leading digital apps, digital ecosystems and high speed connectivity platform under one umbrella. Reliance Jio Infocomm, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
RIL, Jio Platforms and Facebook Inc. on 22 April 2020 announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.
RIL and Jio Platforms announced on 4 May that Silver Lake will invest Rs 5,655.75 crore into Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5% premium to the equity valuation of the Facebook investment announced on 22 April 2020.
RIL has soared 29.63% in last one month as compared to a 6.5% rise in benchmark BSE Sensex.
RIL is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
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