US-based private equity company KKR is set to invest Rs 11,367 crore in Jio Platforms for a 2.32 per cent stake. This will be the fifth investment in the Reliance Industries business in quick succession, following those by social media behemoth Facebook and private equity funds Silver Lake, Vista Equity Partners and General Atlantic.
“This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. KKR’s largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis, the company said in a statement.
Over the last month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms.
“I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL).
“KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio,” he added.
The transaction is subject to regulatory and other customary approvals.
Last week, General Atlantic said it will be acquiring 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore. Prior to that Vista Equity Partners said it will infuse Rs 11,367 crore for a 2.32 per cent stake. US private equity company Silver Lake said it will pump in Rs 5,655.75 crore in Jio Platforms for a 1.15 per cent stake and on April 22, Facebook said it would invest $5.7 billion (about Rs 43,574 crore) for a 9.99 per cent stake.
Henry Kravis, Co-Founder and Co-CEO of KKR, said: “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide.”
“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” he added.
KKR is making the investment from its Asia private equity and growth technology funds.
(With inputs from timesnownews)