Only days after Mubadala, Abu Dhabi’s second-largest sovereign wealth fund, announced plans to buy a 1.9 per cent stake in Jio Platforms, Abu Dhabi Investment Authority (ADIA), the largest investment arm of the government of Abu Dhabi, has become the seventh investor in Jio Platforms in the past two months.
Jio Platforms is set to raise an estimated $776.5 million by selling a 1.16 per cent stake to ADIA. This means a total of $12.96 billion has now been promised from seven investors in exchange for a stake of just over 21 per cent.
The Jio Platforms unit is mainly made up of Reliance Industries' telecommunications business led by Reliance Jio Infocomm (the country’s largest mobile operator, with more than 388 million subscribers), along with other digital properties and investments. Jio Platforms’ other investors include Facebook, Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR and Mubadala.
In fact Silver Lake is now a two-time investor, have recently raised its total investment to about $1.35 billion for a 2.08 per cent stake. With approximately $40 billion in combined assets under management and committed capital and a focus on the world’s great tech and tech-enabled opportunities, Silver Lake describes itself is the global leader in large-scale technology investing.
Not surprisingly, this latest investment in the digital and telecommunications business unit of Reliance Industries has pushed the shares of the company to new highs.
The question now is whether further deals will follow (there were rumours last week that Saudi Arabia’s Public Investment Fund was said to be discussing an investment) or whether Reliance Industries feels it has done enough to ensure it is on track to reduce its net debt from over $20 billion to zero by March next year.